unemployment occurs when someone

wants to work but cannot find a job

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

the unemployment rates tells us

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

frictional unemployment is...

caused by workers changing their locations, jobs, or careers

structural unemployment

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

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

the natural rate of unemployment

the labor demand curve shows...

relationship between total labor demanded by firms and the wage rate

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

retired, full time student, or SAH parent

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Chapter 9 Macroeconomics

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Unemployment and the Labor Market

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Questions 20

Answers

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

Chapter 9 Macroeconomics Flashcards | StudBud