exists at any time during the business cycle

the labor supply curve

is made up of workers who want to work for firms at each given wage

structural unemployment

when there is a mismatch between skills workers offer and skills in demand

the labor demand curve shows...

relationship between total labor demanded by firms and the wage rate

unemployment occurs when someone

wants to work but cannot find a job

frictional unemployment is...

caused by workers changing their locations, jobs, or careers

the normal level of unemployment that persists in an economy in the long run is...

the natural rate of unemployment

the labor force does not include people in the working age population who are...

retired, full time student, or SAH parent

the unemployment rates tells us

what % of the labor force wants to work but cant find a job

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Chapter 9 Macroeconomics

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Unemployment and the Labor Market

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Questions 20

Answers

1
which type of unemployment does not contribute to the natural rate of unemployment?
frictional
cyclical
structural
real-wage
2
real-wage unemployment can be caused by...
retraining programs
low-interest student loans
tariffs and import quotas
minimum-wage laws
3
in the United States, to count as unemployed, you must be...
younger than 65 years old
actively looking for work
skilled enough to hold a job
employed as a civilian or enlisted in the armed forces
4
an increase in GDP growth will likely cause the labor ___ curve to shift to the ___
supply; right
demand; right
demand; left
supply; left
5
Barb works while attending college. when she graduates, she quits and searches for a job related to her degree. She is..
frictionally unemployed
structurally unemployed
cyclically unemployed
classically unemployed
6
unemployment...
tends to increase during times of economic recovery
occurs only during times of recession
exists at any time during the business cycle
is highest during times of peak economic activity
7
the labor supply curve
is made up of workers who want to work for firms at each given wage
shows the # of firms that want to hire workers decreases as wages increase
shows the # of firms that are willing to hire workers at each given wage
is made up of firms that want to hire workers at each given wage
8
unemployment rates tend to be highest during periods of...
stagflation
expansion
recovery
recession
9
structural unemployment
when there is a mismatch between skills workers offer and skills in demand
is caused by workers changing their locations, jobs, or careers
occurs when workers voluntarily quit their jobs
is the effect of wages remaining above market-clearing level
10
which type of unemployment does not contribute to the natural rate of unemployment?
cyclical unemployment
frictional unemployment
real-wage unemployment
structural unemployment
11
the labor demand curve shows...
relationship between total employment demanded by workers and the wage rate
all things equal, firms will want to hire constant labor at each wage rate
relationship between total labor demanded by firms and the wage rate
a positive slope
12
Sonia has a BA in art history and is currently working full time at a cafe. the BLS would classify Sonia as...
a discouraged worker
employed
unemployed
underemployed
13
Carol is an autoworker who was laid off when the factory shut down. She cannot find another job. Carol is...
real-wage unemployed
structurally unemployed
frictionally unemployed
a discouraged worker
14
unemployment occurs when someone
wants to work but cannot find a job
should be working but chooses not to
is not working full time
is not utilizing their full set of skills
15
frictional unemployment is...
not connected to natural rate of unemployment
when there's a mismatch between skills workers offer and skills demanded
caused by workers changing their locations, jobs, or careers
effect of wages remaining above the market-clearing level
16
the normal level of unemployment that persists in an economy in the long run is...
the natural rate of unemployment
the equilibrium of underemployment
zero with effective public policy
zero, as long as the market is in equilibrium
17
the labor force does not include people in the working age population who are...
employed part time
employed
not actively trying to find a job
retired, full time student, or SAH parent
18
the unemployment rates tells us
what % of the labor force wants to work but cant find a job
what will happen in the labor market in the future
why the unemployed cant find work
the number of people who don't want to work
19
in the United States, the working-age population includes people...
in the military
in prison
aged 16 or older
who are less than 16 years old
20
in the United States, the working-age population does not include people...
who do not have a drivers license
in the military
who are 65 years old
who are 16 years old

Chapter 9 Macroeconomics Flashcards | StudBud