Question 1

Full employment means that

Accepted Answer

The answer of Full employment means that
...

Question 2

According to the scenario above, in which of the following groups are all the people structurally unemployed?

Accepted Answer

The answer of According to the scenario above, in which...

Question 3

The natural unemployment rate

Accepted Answer

The answer of The natural unemployment rate
...

Question 4

Full employment occurs when

Accepted Answer

Full employment occurs when cyclical unemployment is zero, which means that all workers who are willing and able to work have jobs, and the unemployment rate is at its natural rate. This does not mean that there is no frictional or structural unemployment, as these are natural parts of any labor market.

Question 5

In 2011, real GDP in the United States was below potential GDP. This fact definitely means that

Accepted Answer

When real GDP is below potential GDP, it indicates that the economy is operating below its full capacity. As a result, businesses may not be able to sell all their goods and services, leading to a decline in profits, and causing them to reduce output and lay off workers. This results in a higher unemployment rate, which is above the natural unemployment rate. Therefore, choice B is the correct answer. The other choices are incorrect because a lower real GDP does not necessarily mean the economy is in an expansion or that cyclical unemployment has been decreasing, and frictional unemployment cannot be negative.

Question 6

Full employment occurs when

Accepted Answer

The answer of Full employment occurs when
...

Question 7

During a recession, the average duration of unemployment tends to

Accepted Answer

During a recession, there is a decrease in demand for goods and services which leads to businesses cutting back on production and employment. This typically results in a higher number of unemployed individuals and a longer duration of unemployment for those seeking jobs. Therefore, the average duration of unemployment tends to increase during a recession.

Question 8

When the economy is at full employment,

Accepted Answer

At full employment, there is no cyclical unemployment, which is the type of unemployment caused by downturns in the business cycle. However, there may still be some frictional and structural unemployment, which are caused by factors such as workers switching jobs or changes in the economy's structure. Therefore, choice C correctly identifies the absence of cyclical unemployment without making any assumptions about the levels of other types of unemployment.

Question 9

Full employment is the level of unemployment that occurs

Accepted Answer

The answer of Full employment is the level of unemployment...

Question 10

At full employment there is no

Accepted Answer

The answer of At full employment there is no
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Question 11

The average duration of unemployment

Accepted Answer

During recessions, there are more layoffs and fewer job openings, which causes the average duration of unemployment to increase. During expansions, the opposite is true, as there are more job openings and fewer layoffs, leading to a decrease in the average duration of unemployment.

Question 12

Which is true regarding cyclical unemployment?
i. Cyclical unemployment is positive at business cycle peaks.
ii. Cyclical unemployment is negative at business cycle troughs.
iii. Cyclical unemployment is zero at full employment.

Accepted Answer

The answer of Which is true regarding cyclical unemployment?
i. Cyclical...

Question 13

At full employment there still exists some unemployment because

Accepted Answer

The U.S. economy is constantly creating and destroying jobs, leading to frictional and structural unemployment even at full employment. Lazy individuals (A) and those too old or young for the labor force (B) do not directly contribute to unemployment levels at full employment. Unemployment due to people not working a full 40 hours per week (D) or because real GDP cannot exceed potential GDP (E) is not applicable in this context.

Question 14

The natural unemployment rate is the unemployment rate that exists when there is no

Accepted Answer

The answer of The natural unemployment rate is the unemployment...

Question 15

When the economy is at full employment, the

Accepted Answer

When the economy is at full employment, the unemployment rate is still not 0 percent because there will always be some level of frictional and structural unemployment. However, at full employment, there is no cyclical unemployment - which is the part of unemployment that is caused by a lack of demand in the economy. Therefore, at full employment, the natural unemployment rate equals the unemployment rate.

Question 16

According to the scenario above, in which of the following groups are all the people cyclically unemployed?

Accepted Answer

The answer of According to the scenario above, in which...

Question 17

Full employment means that

Accepted Answer

The answer of Full employment means that
...

Question 18

Full employment occurs when the

Accepted Answer

Full employment occurs when the unemployment rate equals the natural unemployment rate, which is the minimum level of unemployment that would exist in the economy due to factors such as skills mismatch and voluntary job changes, even in the absence of cyclical or demand-related unemployment. Therefore, full employment does not require the elimination of all frictional or structural unemployment, but rather their optimum balance with cyclical unemployment.

Question 19

During an recession, the duration of unemployment ________ and the unemployment rate is ________ the natural rate of unemployment.

Accepted Answer

During a recession, companies are likely to reduce their workforce, leading to an increase in unemployment duration. Moreover, the overall decrease in production and consumption during a recession causes a spike in the unemployment rate, which is greater than the natural rate of unemployment.

Question 20

Natural unemployment equals the sum of

Accepted Answer

Natural unemployment is composed of frictional and structural unemployment. Cyclical unemployment, on the other hand, is related to fluctuations in the overall economy and is not considered a part of natural unemployment. Business unemployment is not a commonly used classification of unemployment.

Quiz 15: Jobs and Unemployment

Full employment means that

According to the scenario above, in which of the following groups are all the people structurally unemployed?

The natural unemployment rate

Full employment occurs when

In 2011, real GDP in the United States was below potential GDP. This fact definitely means that

Full employment occurs when

During a recession, the average duration of unemployment tends to

When the economy is at full employment,

Full employment is the level of unemployment that occurs

At full employment there is no

The average duration of unemployment

Which is true regarding cyclical unemployment? i. Cyclical unemployment is positive at business cycle peaks. ii. Cyclical unemployment is negative at business cycle troughs. iii. Cyclical unemployment is zero at full employment.

At full employment there still exists some unemployment because

The natural unemployment rate is the unemployment rate that exists when there is no

When the economy is at full employment, the

According to the scenario above, in which of the following groups are all the people cyclically unemployed?

Full employment means that

Full employment occurs when the

During an recession, the duration of unemployment and the unemployment rate is the natural rate of unemployment.

Natural unemployment equals the sum of