8. 7. Suppose you work hard at a job after graduation and after your first year, your effort is rewarded with a 3% raise when the average wage increase in your company is 2%. Then, the government releases its
inflation report which states inflation is running at 5%. Given this information, did your standard of living improve? Why or why not?
9. Since 1987, the U.S. population has grown 32%, while employment has increased by 39%. Further, the number of people unemployed has risen by 3%. Are all of these indicators a sign of a strong or weak labor
market over the past two decades?
10. Assume you just lost your job and have decided to take a month-long break to travel to Europe before looking for a new position. Just as you return home from your trip, you are interviewed by the Department of
Labor about your employment status. How would you be classified (employed, unemployed, or not in the labor force)? Explain why.
