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CHAPTER 8 FernandoQuijano Preparedby YourLeaders Youwillbeaveragelydividedinto3groupsbyyourstudentnumbers andeachgroupwillchoosealeader andMr Zhouhongwen Miss ZhanghuizhenandMiss LiQiaoqiaoareavailable CHAPTER 8 Eachgroupwillhave3questionsofmultiplechoicetoanswerandyouonlyhave2minutestothinkthemovertogetherandchooseyourbestanswerandreporttothehost otherwiseyourgrouplosesthechance Eachquestionaccountsfor5points TIPS Asthequestionsarescatteredrandomlyyoucanhaveyourgroupmemberssub dividedagainintosmalleronessothateachwilldealwithaparticularpartofthischapter FirstRound CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupA 1 What stheNaturalrateofunemployment Africtionalunemployment cyclicalunemploymentBfrictionalunemployment structuralunemploymentCstructuralunemployment cyclicalunemploymentDstructuralunemployment seasonalunemployment CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupB 2 Whichofthefollowingindexesthatcannotmeasurethechangeofpricelevel A GDPdeflatorB CPIC PPIDefficiencywages CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupC 3 WhichofthefollowingisincludedintheMiseryIndexinitiallyputforwardbyArthurOkun A unemploymentrate inflationrateBunemploymentrate laborforceparticipationrateCinflationrate nominalinterestrateD inflationrate realinterestrate CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupA 4 Whenwecalculatetherealinterestrate weneedtotheinflationratethenominalinterestrate pluswithB subtractfromC multiplybyD divideby CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupB 5 Theseasonalunemploymentisakindof AfrictionalunemploymentBstructuralunemploymentCcyclicalunemployment CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupC 6 Whichofthefollowingtermsmeans bydefinition anaverageofthepricesofthegoodsandservicespurchasedbythetypicalurbanfamilyoffour A CPIB PPIC investmentD GDPdeflator CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupA 7 TheCPIin1924was30 andtheCPIin2008was150 Whatincomewouldyouhaveneededin2008tohavehadthesamepurchasingpowerof6000inthe1924 A 10000B 20000C 30000D 40000 CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupB 8 Whenpeopleborrowmoney theymustforecastthesotheycancalculatetherealinterestrate unemploymentrateinterestrateincomeinflationrate CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupC 9 Departmentstoresincreasetheirhiringinwinterbutdecreaseitshiringinspringisakindof inthebook AnavoidableunemploymentBstructuralunemploymentCcyclicalunemploymentDseasonalunemployment CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupA 10 Whichofthefollowingtermsmeans bydefinition anaverageofthepricesreceivedbyproducersofgoodsandservicesatallstagesoftheproductionprocess A CPIB PPIC investmentD GDPdeflator CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupB 11 Whentheactualinflationrateturnsouttobelowerthantheexpectedinflationrate whichoneistrue A theborrowerswilllose thelenderswillgainB theborrowerswillgain thelenderswillloseC boththeborrowersandthelenderswillloseD boththeborrowersandthelenderswillgain CHAPTER 8 FernandoQuijano Preparedby QuestionsforGroupC 12 Theunemploymentrate duringexpansionand duringrecessions ArisesfallsBupdownCfallsrisesDdownup CHAPTER 8 FernandoQuijano Preparedby SecondRound Inthesecondround eachgroupwillhaveanopenquestiontoanswer andyouhave3minutestothinkoverandreporttheanswer Eachquestionaccountsfor10points CHAPTER 8 FernandoQuijano Preparedby QuestionsSheetA QuestionsforGroupA 1 Doyouknowsomefactorsthatwilloverstatetheunemploymentrate CHAPTER 8 FernandoQuijano Preparedby Key Thefirstisthatsomeoneclaimstobeactivelylookingforajobtoremaineligibleforthegovernmentpaymenttotheunemployed Andotherpeoplemightbeemployedbutengagedinillegalactivity suchasdrugdealingortheywanttoconceivealegitimatejobtoavoidpayingtaxes CHAPTER 8 FernandoQuijano Preparedby QuestionsSheetB QuestionsforGroupB WhyshouldweusetheCPItodirectlymeasurethecostofourliferatherthantheGDPdeflator CHAPTER 8 FernandoQuijano Preparedby Key Becausechangesinthisindexcomesclosesttomeasuringchangesinthecostoflivingasexperiencedbythetypicalhousehold CHAPTER 8 FernandoQuijano Preparedby QuestionsSheetC QuestionsforGroupC Whatistherelationshipbetweengovernmentpoliciesandtheunemploymentrate CHAPTER 8 FernandoQuijano Preparedby Key Thereareinextricablylinkedbetweengovernmentpoliciesandtheunemploymentrate Eitherbypursuingpoliciesthathelpspeeduptheprocessofmatchingunemployedworkerswithunfilledjobsorbyimplementingpoliciesthataidworkerretraining governmentscanhelpreducetheunemploymentrate Eitherbyincreasingthetimeworkersdevotetosearchingforjobs byprovidingdisincentivesforfirmstohireworkers orbykeepingwagesabovetheirmarketlevel governmentpoliciesincreasetheunemploymentrate CHAPTER 8 FernandoQuijano Preparedby youstillhave2minutestomakeajudgmentwhetherthestatementwillbeTrueandFalse Thereare10statementsforall Whilethistime youwillhavetofightforyourchancetoanswerthequestionsbyraisingyourhandsassoonaspossible Onlythefirsthandgetsthechance butyouwillhavetoreportyouranswertothehostwithin5seconds otherwisethechancegoestoothergroups Eachquestionaccountsfor5points ThirdRound CHAPTER 8 FernandoQuijano Preparedby QuestionsSheetA 1 Frictionalunemploymentisakindofunemploymentcausedbythemismatchbetweentheskillsandattributesofworkersandtherequirementsofjobs 2 CPIisanaverageofthepricesofthegoodsandservicespurchasedbythecommunity 3 Discoursedworkersareincludedinthelaborforce 5 WISisforWageIncomeSupplyinSing
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