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In the BLS household survey, people on active military service are not included in the totals for employment, the labor force, or the working-age population. Suppose the BLS included the military in these categories. How would the unemployment rate, the labor force participation rate, and the employment–population ratio change?

Fill in the blank cells in the following table of data collected in the household survey for June 2015:

  What is the relationship between frictional unemployment and job search? What is the natural rate of unemployment? What is the relationship between the natural rate of unemployment and full employment?

Briefly explain whether you agree with the following statement:“I don’t believe the government price statistics. The CPI for 2014 was 237, but I know that the inflation rate couldn’t have been as high as 137 percent in 2014.”

What is the difference between a nominal variable and areal variable? During a period of deflation, which is likely to increase faster: nominal average hourly earnings or real average hourly earnings? Briefly explain.

Suppose that you need to calculate the percentage increase in real GDP in a certain country between year t-10 and year t-6. Use the data contained in the following table and comment on the magnitude of the resulting growth rate:

In an article in the Wall Street Journal, a professor of financial planning noted the effect of rising prices on purchasing power: “Today, $2,000 a month seems reasonable [as an income for a retired person in addition to the person’s Social Security payments], but 40 years from now that’s going to be three cups of coffee

On a saving supply and investment demand diagram, show what happens to equilibrium real interest rate and equilibrium quantity. a. Households increase their expenditures on goods that are domestically produced. b. Firms become more pessimistic about the economy in the near future and so decrease their investment c. Government increases its spending on public investment

Briefly explain why the total value of saving in the economy must equal the total value of investment. What are loanable funds? Why do businesses demand loanable funds? Why do households supply loanable funds?

An article in the Wall Street Journal about Australian economy noted that “Rising government debt is holding back public spending at a time when business also aren’t investing” Does this information indicate that the Australian economy was approaching an economic recession? Briefly explain.