# Compute the inflation rate for each year 1993–2012 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur

• 2. (Measuring Unemployment) Suppose that the U.S. noninstitutional adult population is 230 million and the labor force participation rate is 67 percent.
1. What would be the size of the U.S. labor force?
2. If 85 million adults are not working, what is the unemployment rate?

3. (Types of Unemployment) Determine whether each of the following would be considered frictional, structural, seasonal, or cyclical unemployment:
1. A UPS employee who was hired for the Christmas season is laid off after Christmas.
2. A worker is laid off due to reduced aggregate demand in the economy.
3. A worker in a DVD rental store becomes unemployed as video-on-demand cable service becomes more popular.
4. A new college graduate is looking for employment.

5. (The Meaning of Full Employment) When the economy is at full employment, is the unemployment rate at zero percent? Why or why not? How would a more generous unemployment insurance system affect the full employment figure?

7. (Inflation) Here are some recent data on the U.S. consumer price index:
Year CPI
1992 140.3
1993 144.5
1994 148.2
1995 152.4
1996 156.9
1997 160.5
1998 163.0
1999 166.6
2000 172.2
2001 177.1
2002 179.9
2003 184.0
2004 188.9
2005 195.3
2006 201.6
2007 207.3
2008 215.3
2009 214.5
2010 218.1
2011 224.9
2012 229.6
Compute the inflation rate for each year 1993–2012 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year?

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