1. Which statistic tracks changes in the prices of goods and services that house

ID: 1136410 • Letter: 1

Question

1. Which statistic tracks changes in the prices of goods and services that households typically buy?

a. the GDP deflator

b. the PPI

c. the CPI

d. GDP

2. With which of the following responses would the BLS declare the person unemployed?

a. "I'm currently working, but I only work 20 hours per week."

b. "I want to work, gave up looking for a job 2 months ago."

c. "I'm retired."

d. "I want to work and went to 2 interviews last week."

3. As a large number of students graduate from college in May, which category below will most likely increase?

a. Frictional Unemployment

b. Seasonal Unemployment

c. Structural Unemployment

d. Cyclical Unemployment

4. When the economy comes out of a recession, which of the following is true?

a. All structural unemployment has been eliminated.

b. The Natural Rate of Unemployment has decreased.

c. The economy has reached its Natural Rate of Unemployment.

d. Seasonal Unemployment has been eliminated.

a) "C"

The CPI or the consumer price index affects the households most and it monitors the changes in the price of the goods and services.

b) "D"

I want to work and went to two interviews, it will be considered as frictional unemployed.

c) "A"

College grads looking for a job will fall under frictional unemployed.

d) "C"

The natural rate of unemployment has been reached.

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