You can click on the following link to download the problem set for this module: Unemployment and Inflation Problem Set.

## Unemployment and Inflation Problem Set^{[1]}

### Use the following information to answer questions 1 through 4:

Consider the following labor statistics for adult population (age 16 and older) in Japan displayed in the table below (all numbers in millions).

Employment Status | Number of people (in millions) |

Employed |
130 |

Unemployed |
9 |

Not in Labor Force |
85 |

- Using the data above calculate Labor Force for Japan.

- Using the data above calculate unemployment rate for Japan.

- Using the data above calculate adult population for Japan.

- Using the data above calculate labor force participation rate for Japan.

### Use the following information to answer questions 5 through 12:

Suppose that a typical market based in Japan consists of 200 Apples and 290 Textbooks.

The table below shows data on prices for Apples and Textbooks in Japan for three years.

Year | Price of Apples | Price of Textbooks |

2014 | $1.40 | 200 |

2015 | $1.10 | 140 |

2016 | $1.10 | 200 |

Assume that the base year is 2015.

- Given this data, what is the price of the basket in 2014?

- What is the price of the basket in 2015?

- What is the price of the basket in 2016?

- What is CPI in 2014?

- What is CPI in 2015?

- What is CPI in 2016?

- What is the inflation rate between 2014 and 2015?

- What is the inflation rate between 2015 and 2016?

- Suppose that the nominal interest rate in Japan is 10.4%. In addition, the inflation rate is equal to 4.2%.

Given this information, what is the real interest rate in Japan?

- Suppose that a typical doctor earned $41,000 in 1978. In addition, you know that in 1990 a typical doctor earns $76,000. Finally, you also know that the CPI in 1978 is 210 and in 1990 is 230.

Given this information, a doctor’s 1978 salary in 1990 dollars is $__________.

- Suppose that a typical professor earned $28,000 in 1978. In addition, you know that in 1998 a typical professor earns $93,000. Finally, you also know that CPI in 1978 is 90 and in 1998 is 250.

Given this information, the salary of a typical professor in 1998 relative to 1978 is (select one):

- higher
- lower

[1] This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https://www.desmos.com/calculator.