Module 7 Assignment: Problem Set — Unemployment and Inflation

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
  1. Using the data above calculate Labor Force for Japan.

 

  1. Using the data above calculate unemployment rate for Japan.

 

  1. Using the data above calculate adult population for Japan.

 

  1. 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.

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

 

  1. What is the price of the basket in 2015?

 

  1. What is the price of the basket in 2016?

 

  1. What is CPI in 2014?

 

  1. What is CPI in 2015?

 

  1. What is CPI in 2016?

 

  1. What is the inflation rate between 2014 and 2015?

 

  1. What is the inflation rate between 2015 and 2016?

 

  1. 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?

 

  1. 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 $__________.

 

  1. 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):

  1. higher
  2. 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.