1. QUIZ ABOUT
MEASURING
UNEMPLOYMENT

2. • inflation initiated by an increase in aggregate
demand.
ANS: DEMAND-PULL INFLATION

3. • occurs when the overall price level continues to rise
over some fairly long period of time. Sustained inflation
is essentially a monetary phenomenon. For the price
level to continue to rise period after period, it must be
accommodated by an expanded money supply.
ANS: SUSTAINED INFLATION

4. • The number of people employed plus the number
of unemployed.
ANS: LABOR FORCE

5. • Measures of prices that producers
receive for products at all stages in
the production process.
ANS: PRODUCER PRICE INDEXES (PPIS)

6. • A fall in the price level of the economy.
It means there will be a negative
inflation rate.
ANS: DEFLATION

7. • The increase in unemployment that occurs during
recessions and depressions.
ANS: CYCLICAL UNEMPLOYMENT

8. • The unemployment that occurs as a normal part of the
functioning of the economy.
ANS: STRUCTURAL UNEMPLOYMENT

9. • The portion of unemployment that is due to the normal working of
the labor market; used to denote short-run job/skill matching
problems.
ANS: FRICTIONAL UNEMPLOYMENT

10. • The difference between the interest rate on a loan and
the inflation rate.
ANS: REAL INTEREST RATE