ECON 200 Test 2- Study Guide - ECON 200 Test 2 Study Guide...

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ECON 200 Test 2: Study Guide Chapter 6 I. Measuring The Price Level A. Using the CPI to Compute the Price Level .
B. Inflation and the CPI
How you are depends on if your income is rising by the same percentage as, a smaller percentage than, or a greater percentage than the inflation rate.
C. GDP Implicit Price Deflator
Unlike the CPI it is based on all goods and services produced in an economy. D. Converting Dollar from One Year to Another A dollar today is less than a dollar tomorrow. Salary in today’s dollars = Salary of Earlier Year CPI of Current Year CPI of EarlierYear x 100 II. Measuring Unemployment A. Who are the Unemployed? The US population can be divided into two groups. One consists of people under 16, in the armed forces, or institutionalized (in prison, mental institution, or home for the aged). The second group is called the civilian noninstitutional population . The civilian noninstitutional population can be divided into persons not in the labor force and persons in the civilian labor force. People not in the labor force are neither working nor looking for work. The civilian labor force can be divided into the employed and unemployed. B.

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