1.Define the following:

a.Labor Force

b.Discouraged worker

c.Recession

2.TRUE AND FALSE (write True or False against each answer. Do not use T or F)

a.Business cycles have to do with the price levels in a country's economy

b.The duration of each phase of the business cycle is predictable

c.Those that are frictionally unemployed have outdated skills

d.Inflation is one-time rise in the price levels of an economy

e.An "unemployed person" is one who has lost his or her job.

f.Labor force consists of those that are employed - both part-time and full-time

g.Core Inflation rate, is calculated without including food and energy items in cpi

3.MULTIPLE CHOICE (circle the correct answer)

a.Structural unemployment occurs because of:

i.A productive worker

ii.Recession

iii.Yearly swings in retail sales

iv.Technical innovations

b.Tom has looked for a job for the past 3 weeks since losing his job but now has given up because he is convinced that he cannot find a job. He is classified as:

i.Employed

ii.unemployed

iii.Discouraged worker

iv.In labor force

c.A 25year old steel worker has not worked for the past year. She has looked for a job for more than 6 weeks but now has given up. She would be classified as:

i.Employed

ii.unemployed

iii.Discouraged worker

iv.In labor force

4.Calculate the unemployment rate:

The population of Germany is 480 million. The number of employed is 110 million and the number of unemployed in the country is 222 million.

5.The bundle of goods and services in 2004 was valued at $998. The value of goods and services in 2000, the base year, was valued at $750. What was the CPI in 2004?

6.The population of India is 990 million. The number of employed is 420 million. The Labor Participation rate is 75%. What is the unemployment rate?

7.The cpi in 2015, the base year was 380. The cpi in the year 2016 was 435. What is the inflation rate?