Question 1

Suppose that in an economy the structural unemployment rate is 1.1 percent, the frictional unemployment rate is 3.3 percent, and the unemployment rate is 3.1 percent. The natural unemployment rate is _________ percent and the cyclical unemployment rate is ___________ percent.
A)7.5; 4.4
B)0.2; 9.9
C)4.4; -1.3
D)2.2; 3.1

Accepted Answer

The natural unemployment rate is the sum of structural and frictional unemployment rates, which is 1.1% + 3.3% = 4.4%. The cyclical unemployment rate is the difference between the actual unemployment rate and the natural unemployment rate, which is 3.1% - 4.4% = -1.3%. Therefore, the answer is choice C.

Question 2

Describe the terms frictional unemployment, structural unemployment, and cyclical unemployment. Give a hypothetical example of each to help support your answer.

Accepted Answer

The answer of Describe the terms frictional unemployment, structural unemployment,...

Question 3

If the existing unemployment rate is 6.2 percent and the natural unemployment rate is 4.5 percent, the cyclical unemployment rate is ________ percent.
A)10.7
B)5.35
C)-1.7
D)1.7

Accepted Answer

Cyclical unemployment rate = Actual unemployment rate - Natural unemployment rate
= 6.2% - 4.5%
= 1.7%

Question 4

If the existing unemployment rate is 3.1 percent and the natural unemployment rate is 4.5 percent, the cyclical unemployment rate is ________ percent.
A)7.6
B)3.8
C)-1.4
D)1.4

Accepted Answer

Cyclical unemployment rate is calculated by subtracting the natural unemployment rate from the actual unemployment rate, which in this case is 3.1% - 4.5% = -1.4%.

Question 5

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. The frictional unemployment rate is _________ percent and the actual unemployment rate (in this economy) is ___________ percent.
A)7.5; 3.3
B)4.2; 11.7
C)7.3; 3.1
D)3.1; 7.3

Accepted Answer

The frictional unemployment rate can be found by subtracting the structural unemployment rate from the natural unemployment rate (5.3% - 2.2% = 3.1%). The actual unemployment rate is the sum of the natural unemployment rate and the cyclical unemployment rate (5.3% + 2% = 7.3%).

Question 6

Describe the difference between the employment rate and the labor force participation rate (LFPR). Under what circumstance would the two be equal to one another?

Accepted Answer

The answer of Describe the difference between the employment rate...

Question 7

Describe what the term "full employment" means to an economist.

Accepted Answer

The answer of Describe what the term "full employment" means...

Question 8

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.
A)frictional
B)structural
C)cyclical
D)natural

Accepted Answer

The difference between the existing unemployment rate and the natural unemployment rate is defined as the cyclical unemployment rate. This is because cyclical unemployment refers to the fluctuations in unemployment that occur due to changes in the business cycle. The natural unemployment rate refers to the level of unemployment that exists even when the economy is operating at full capacity. This includes frictional and structural unemployment, which are considered to be part of the normal functioning of the labor market.

Question 9

Describe what the unemployment rate and the employment rate measure. If we were to sum the unemployment rate and the employment rate, would that sum be equal to one hundred percent? Explain why or why not.

Accepted Answer

The answer of Describe what the unemployment rate and the...

Question 10

When making historical comparison's of one's income, is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other.

Accepted Answer

The answer of When making historical comparison's of one's income,...

Question 11

If the government enacts legislation which allows lenders to lower lending standards, the government indirectly___________ the demand for which leads to _________ house prices.
A)decreased; higher
B)decreased; lower
C)increased; higher
D)increased; lower

Accepted Answer

Lowering lending standards makes it easier for more people to qualify for loans, thereby increasing the demand for houses. As demand increases, house prices typically rise due to the higher competition for available properties.

Quiz 6: Macroeconomic Measurements Part I Prices and Unemployment

Suppose that in an economy the structural unemployment rate is 1.1 percent, the frictional unemployment rate is 3.3 percent, and the unemployment rate is 3.1 percent. The natural unemployment rate is _ percent and the cyclical unemployment rate is ___ percent.

Describe the terms frictional unemployment, structural unemployment, and cyclical unemployment. Give a hypothetical example of each to help support your answer.

If the existing unemployment rate is 6.2 percent and the natural unemployment rate is 4.5 percent, the cyclical unemployment rate is ________ percent.

If the existing unemployment rate is 3.1 percent and the natural unemployment rate is 4.5 percent, the cyclical unemployment rate is ________ percent.

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. The frictional unemployment rate is _ percent and the actual unemployment rate (in this economy) is ___ percent.

Describe the difference between the employment rate and the labor force participation rate (LFPR). Under what circumstance would the two be equal to one another?

Describe what the term "full employment" means to an economist.

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

Describe what the unemployment rate and the employment rate measure. If we were to sum the unemployment rate and the employment rate, would that sum be equal to one hundred percent? Explain why or why not.

When making historical comparison's of one's income, is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other.

If the government enacts legislation which allows lenders to lower lending standards, the government indirectly___ the demand for which leads to _ house prices.