1. List the 3 categories of unemployment.

a) ____________________, b) _____________________ and c) ___________________

2. The formula for the unemployment rate is ________________________________

3. The current rate of unemployment is ____________________

4. According to Okun's law if the actual unemployment rate was 7% and the NRU was 4% what is

the size of the GDP gap? ___________________

5. The formula for the inflation rate is __________________________

6. Real vs. Nominal Income. You got a 5% pay increase, and inflation is 1.5%, what happened to

your real income? _____________________

7. The two types (causes) of inflation are called _______________ and _________________