Reference no: EM132405789

1. How does the existence of the underemployed and the discouraged workers skew (distort) the meaning of the unemployment data?

2. Why does full employment never result in 0% unemployment?

3. Of the types of unemployment noted, which do you believe is the most difficult to solve? Why?

4. What is the real cost of unemployment for our society?

5. Why might labor unions be interested in limiting the employment of younger workers?

6. Explain why cities with a high inflow of immigrants have lower wage rates.

7. If the CPI in 1997 was 170 and the CPI is 1998 was 180, what was the rate of inflation between 1997 and 1998?

8. Suppose, like Japan, the USA experienced a deflation (prices falling). Would this be a good thing?

9. Evaluate this statement: "Tokyo is a very expensive place to live. They must have a very high inflation rate there."

10. What is the link between the CPI and COLAs?

11. The inflation rate has been low for years. In what ways might this be a bad thing for some in our country? (Think about the answer to #10.)

12. Briefly explain the mechanics of how the US unemployment benefits work.