Question

5. (5 pts) (Recall that to be counted as unemployed by the Bureau of Labor Statistics (BLS), ment rate (U3) individuals must be actively looking for work.) Assume that the unemploy is currently 6%. Individuals are currently required to be actively looking for work to qualify for unemployment benefits. If the Federal government altered policy required individuals to be actively looking for work in order to qualify for unemployment benefits, what would happen to U3: would it increase or decrease? Please explan and no longer (Assume that the definition of U3 is unchanged.) (4 pts) CPI-U in 1970 was 38.8. CPI-U in 1980 was 82.4. CPI-U in 1990 was 130.7 What is the percentage change in the price level from 1970 to 1980? What is the percentage change in the price level from 1980 to 1990? Was inflation greater during the 1970s or the 1980s? a. b. c.

Answer 1

CPI = Ccost ol basket on cuYY ent peAiad) X160 cost 아 banket in bane paied) CPI -U 38 8P 쿠Geo 'l. change from 9to to 1180 ar 0.gayr-o.3 g 8 P6 1980-1140 o 338 pb 24 19 。 2030 P change trom 1980 to 1170 P1140 0.56 nlation 38.9 ( 130F)-(t24) 8 2.4 = 0.5 i6 areatedua Infatin is grerfte 740