Employment, Prices and Ination Chapter 22 0 Four types of unemployment that comprise the overall unemployment rate: 0 Frictional unemployment 0 Seasonal unemployment o Cyclical unemployment (Expansions and contractions affect the cyclical component of the unemployment rate) 0 Structural unemployment I If the current rate is 10% (for example), then that rate could be broken up into the four components based on statistical analysis. 0 Consumer Price Index (CPI) measures the overall price level based on a basket of consumer goods and services 0 Construction of the CPI 0 Base period I 100 0 Changing the base period in the price index 0 Using price indexes to convert nominal to real values