The accompanying list describes the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.
1) Mollie just graduated from college and is now looking for work. She has had three job interviews in
The past month but still has not gotten a job offer.
2) George used to work in an automotive assembly plant. He was laid off six months ago as the
Economy weakened. He expects to return to work in a few months when national economic
Conditions improve.
3) Jeanette worked as an aircraft design engineer for a company that produces military aircraft until
She lost her job last year when the Federal government cut defense spending. She has been
Looking for similar work for a year, but no company seems interested in her aircraft design skills.
4) Ricardo lost his job last year when his company downsized and laid off middle-level managers. He
Tried to ﬁnd another job for a year but was unsuccessful and quit looking for work.
Which individual(s) would be included in the calculation of the natural rate of unemployment?

Question

Quizplus · Accepted Answer

The natural rate of unemployment includes those who are willing and able to work but are currently unemployed due to a lack of job availability or skills mismatch. Mollie and Jeanette fall into this category as they are actively seeking work but have not found suitable employment. George expects to return to work when economic conditions improve, so he is not considered part of the natural rate of unemployment. Ricardo quit looking for work and is no longer considered part of the labor force, so he is also not included in the calculation of the natural rate of unemployment.

The Accompanying List Describes the Responses of Four Individuals to a Bureau