Q: Which of the following best describes the formula for the unemployment rate?

$$\text{Unemployment Rate} = \left( \frac{\text{Number of people unemployed}}{\text{Labour force}} \right) \times 100$$

Q: Suppose the labour force is 25 million and 1.5 million people are unemployed. What is the unemployment rate?

$$\left( \frac{1.5}{25} \right) \times 100 = 6\%$$

Q: The labour force participation rate is calculated as:

$$\left( \frac{\text{Labour force}}{\text{Working-age population}} \right) \times 100$$

Q: If the CPI in 2022 is 120 and in 2023 is 132, what is the inflation rate for 2023?

$$\left( \frac{132 - 120}{120} \right) \times 100 = 10\%$$

Q: The GDP deflator is calculated as:

$$\left( \frac{\text{Nominal GDP}}{\text{Real GDP}} \right) \times 100$$

Q: If the cost of the CPI basket in the base period is $$200 and in the current period is 250$$, what is the CPI for the current period?

$$\left( \frac{250}{200} \right) \times 100 = 125$$

Question 1

Which of the following best describes the formula for the unemployment rate?

Accepted Answer

$$	ext{Unemployment Rate} = \left( \frac{	ext{Number of people unemployed}}{	ext{Labour force}} ight) 	imes 100$$

Question 2

A person who is not working, has looked for a job in the past four weeks, and is available for work is classified as:

Accepted Answer

Unemployed

Question 3

Which of the following is NOT included in the official unemployment rate?

Accepted Answer

Discouraged searchers

Question 4

Suppose the labour force is 25 million and 1.5 million people are unemployed. What is the unemployment rate?

Accepted Answer

$$\left( \frac{1.5}{25} ight) 	imes 100 = 6\%$$

Question 5

Which of the following is an example of structural unemployment?

Accepted Answer

A worker loses their job because their skills are no longer needed due to automation.

Question 6

The labour force participation rate is calculated as:

Accepted Answer

$$\left( \frac{	ext{Labour force}}{	ext{Working-age population}} ight) 	imes 100$$

Question 7

Which of the following is a cost of unemployment discussed in the study materials?

Accepted Answer

Lost human capital due to prolonged unemployment

Question 8

If the CPI in 2022 is 120 and in 2023 is 132, what is the inflation rate for 2023?

Accepted Answer

$$\left( \frac{132 - 120}{120} ight) 	imes 100 = 10\%$$

Question 9

Which of the following is a bias in the Consumer Price Index (CPI)?

Accepted Answer

Commodity substitution bias

Question 10

The GDP deflator is calculated as:

Accepted Answer

$$\left( \frac{	ext{Nominal GDP}}{	ext{Real GDP}} ight) 	imes 100$$

Question 11

Which of the following would NOT be counted as unemployed according to Statistics Canada’s official definition?

Accepted Answer

A person who has stopped looking for work after repeated failure

Question 12

Which of the following best describes cyclical unemployment?

Accepted Answer

Unemployment that rises during recessions and falls during expansions

Question 13

If the cost of the CPI basket in the base period is $$200 and in the current period is 250$$, what is the CPI for the current period?

Accepted Answer

$$\left( \frac{250}{200} ight) 	imes 100 = 125$$

Question 14

Which of the following is true about the natural unemployment rate?

Accepted Answer

It includes only frictional and structural unemployment.

Question 15

Which of the following is a reason for the increase in the labour force participation rate of women since 1960?

Accepted Answer

Technological change in the home increased time available for paid employment.

Question 16

Which of the following is the correct formula for the employment rate?

Accepted Answer

$$\left( \frac{	ext{Employment}}{	ext{Working-age population}} ight) 	imes 100$$

Question 17

Which of the following is a direct effect of unpredictable inflation?

Accepted Answer

Redistribution of income and wealth

Question 18

A person who works part-time but wants a full-time job and cannot find one is classified as:

Accepted Answer

Involuntary part-time worker

Question 19

Which of the following is NOT a step in constructing the Consumer Price Index (CPI)?

Accepted Answer

Calculating the GDP deflator

Monitoring Jobs and Inflation: Employment, Unemployment, and Price Level in Macroeconomics

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