Exercises
Business Cycle, Unemployment and Inflation
Business Cycle, Unemployment and Inflation
What is the difference between employment and underemployment?
Skills required: distinguish between similar concepts
What is the difference between GDP deflator and Consumer Price Index (CPI)?
Skills required: distinguish between similar concepts
To assess the cost of living in different years, which one, Consumer Price Index (A) or Composite Consumer Price Index, is better? Explain.
Skills required: distinguish between similar concepts
Related concepts:
Explain under what condition the nominal interest rate would be higher than the real interest rate.
Skills required: understand the concepts and remember important formula
What is the difference between nominal interest rate and real interest rate?
Skills required: distinguish between similar concepts
There are 300,000 people in labour force and 7,500 people being unemployed in an economy. Calculate the unemployment rate.
Skills required: remember important formula and apply it to the question
There are 2,925,000 people in employment and 75,000 people being unemployed in an economy. Calculate the unemployment rate.
Skills required: remember important formula and apply it to the question
There are 2,925,000 people in employment and 75,000 jobless population in an economy. Calculate the unemployment rate.
Skills required: distinguish between similar concepts and remember important formula
The unemployment rate in an economy is 6% and it has 300,000 labour force. Calculate the number of unemployed population.
Skills required: remember important formula and apply it to the question
The unemployment rate in an economy is 3% and it has 2,400,000 labour force. Calculate the number of unemployed population.
Skills required: remember important formula and apply it to the question
The consumer price index (cpi) is 110, 117, 128 in 2018, 2019 and 2020 respectively. Calculate the inflation rate in 2019 and 2020.
Skills required: remember important formula and apply it to the question
The consumer price index (cpi) is 108 in 2008 and the inflation rate is 2% in 2009. What is the CPI in 2009?
Skills required: remember important formula and apply it to the question
Give an example of people who suffer from loss during an unanticipated inflation.
Skills required: understand the concept
Give an example of people who suffer from loss during an unanticipated deflation.
Skills required: understand the concept
Give an example of people who benefit from gain during an unanticipated inflation.
Skills required: understand the concept
Give an example of people who benefit from gain during an unanticipated deflation.
Skills required: understand the concept
If the nominal interest rate on an asset is 6% and the expected inflation rate is 2%, the real interest rate is __________.
Skills required: remember important formula and apply it to the question
If the nominal interest rate on an asset is 4.5% and the expected inflation rate is 1%, the real interest rate is __________.
Skills required: remember important formula and apply it to the question