Deck 28: 0:sec 280 Mc Unemployment

Question 1

The amount of unemployment varies

A)little over time and across countries.
B)little over time but substantially across countries.
C)substantially over time but little across countries.
D)substantially over time and across countries.

Answer 1

B

Question 2

The deviation of unemployment from its natural rate is called

A)the economic rate of unemployment.
B)cyclical unemployment.
C)frictional unemployment.
D)structural unemployment.

Answer 2

D

Question 3

Cyclical unemployment

A)has a different explanation than does the natural rate of unemployment.
B)refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment.
C)is closely associated with short-run ups and downs of economic activity.
D)All of the above are correct.

Answer 3

D

Question 4

To maintain their standard of living,most people rely on

A)government assistance.
B)their personal savings.
C)their labor earnings.
D)rental income.

Question 5

The natural rate of unemployment

A)arises from a single problem that has a single solution.
B)is easy for policymakers to reduce.
C)Both a and b are correct.
D)None of the above is correct.

Question 6

Cyclical unemployment is closely associated with

A)long-term economic growth.
B)short-run ups and downs of the economy.
C)fluctuations in the natural rate of unemployment.
D)changes in the minimum wage.

Question 7

The natural rate of unemployment is the

A)unemployment rate that would prevail with zero inflation.
B)rate associated with the highest possible level of GDP.
C)difference between the long-run and short-run unemployment rates.
D)amount of unemployment that the economy normally experiences.

Question 8

Cyclical unemployment refers to

A)the relationship between the probability of unemployment and a worker's changing level of experience.
B)how often a worker is likely to be employed during her lifetime.
C)year-to-year fluctuations of unemployment around its natural rate.
D)long-term trends in unemployment.

Question 9

An economy's natural rate of unemployment is the

A)economy's long-run target level of unemployment.
B)amount of unemployment that the economy normally experiences.
C)lowest rate of unemployment the economy can achieve.
D)All of the above are correct.

Question 10

To maintain their standard of living,most people rely on

A)government assistance.
B)their labor earnings.
C)their personal savings.
D)All of the above are correct.

Question 11

Cyclical unemployment refers to

A)the portion of unemployment created by job search.
B)short-run fluctuations around the natural rate of unemployment.
C)changes in unemployment due to changes in the natural rate of unemployment.
D)the portion of unemployment created by wages set above the equilibrium level.

Question 12

The amount of unemployment that an economy normally experiences is called the

A)average rate of unemployment.
B)natural rate of unemployment.
C)cyclical rate of unemployment.
D)typical rate of unemployment.

Question 13

Which of the following is correct?

A)The amount of unemployment that a country typically experiences is a determinant of that country's standard of living,and some degree of unemployment is inevitable in a complex economy.
B)The amount of unemployment that a country typically experiences is a determinant of that country's standard of living,and a complex economy can achieve zero unemployment.
C)The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living,and a complex economy can achieve zero unemployment.
D)The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living,and some degree of unemployment is inevitable in a complex economy.

Question 14

The natural rate of unemployment

A)varies less than the measured unemployment rate.
B)cannot be changed by government policy.
C)is closely associated with the ups and downs in economic activity.
D)is set by the Federal Reserve.

Question 15

In the long run the unemployment rate equals

A)zero.
B)the cyclical rate of unemployment.
C)the natural rate of unemployment.
D)the sum of the cyclical and natural rate of unemployment.