ANSWER ALL OF THE FOLLOWING QUESTIONS WITH MORE THAN A FEW SENTENCES PLEASE
1. Why might you expect individuals who were unemployed in their 20s to have lower wages at the age of 40 than individuals with identical educational backgrounds but who were not unemployed?
2. The starting salary for a new assistant economics professor was $15,000 in 1976 and $90,000 in 2010. The value of the CPI for 2010 was 216.3, compared to 56.9 in 1976. In which year did a newly hired professor earn more in real terms?
3. A country reports a price index of 55 in 2005 and 60 in 2006. What is the inflation rate between 2005 and 2006?
4. How do you think the internet and online shopping would affect the menu costs of inflation?