Question 1

A student who just graduated from college but has not found a job would most likely be

Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed while searching for a new job or transitioning from one job to another. This is common among recent college graduates who are actively seeking employment but have not yet secured a position. Structurally unemployed individuals have lost their jobs due to changes in the economy or technology that make their skills obsolete. Cyclical unemployment is related to the business cycle and occurs during economic downturns when demand for goods and services decreases. Seasonal unemployment is related to changes in demand for labor in certain industries during different times of the year. None of these factors apply to a recent college graduate who has just finished their studies and is actively seeking employment.

Question 2

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labor force.Calculate the labor force participation rate.

Accepted Answer

The answer of Suppose 180,000 people are employed,20,000 people are...

Question 3

The Bureau of Labor Statistics does not count discouraged workers as unemployed.Suppose discouraged workers were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

Accepted Answer

The answer of The Bureau of Labor Statistics does not...

Question 4

Structural unemployment is the result of

Accepted Answer

Structural unemployment is a type of unemployment that occurs due to a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs available in the market. This means that there may be job openings, but the skills and expertise of the applicants do not match the requirements of those jobs. This type of unemployment may occur due to changes in technology, globalization, or changes in consumer demand, among other things.

Question 5

Fill in the missing values in the table of data collected in the household survey for December,1996.The working-age population,employment,unemployment,and labor force are measured in thousands.Show your work.

Accepted Answer

The answer of Fill in the missing values in the...

Question 6

If cyclical unemployment is eliminated in the economy,then

Accepted Answer

Cyclical unemployment is the result of the business cycle, which affects the demand for labor. If it is eliminated, then there is no more cyclical unemployment, and the economy is considered to be at full employment, meaning that all available labor resources are being utilized.

Question 7

Suppose 180,000 people are employed,20,000 people are unemployed,the working-age population is 250,000,and 50,000 people are out of the labor force.Calculate the unemployment rate.

Accepted Answer

The answer of Suppose 180,000 people are employed,20,000 people are...

Question 8

Fill in the missing values in the table of data collected in the household survey for November,2009.The working-age population,employment,unemployment,and labor force are measured in thousands.Show your work.

Accepted Answer

The answer of Fill in the missing values in the...

Question 9

Cyclical unemployment is the result of

Accepted Answer

Cyclical unemployment is the increase in unemployment that occurs during economic downturns or recessions. It is caused by a slowdown in the economy and the consequent reduction in demand for goods and services, leading to a decrease in production and a rise in unemployment. Mismatch unemployment (choice A) and search unemployment (choice B) are different types of unemployment that occur for different reasons. Inflation (choice C) is not directly related to cyclical unemployment.

Question 10

The Bureau of Labor Statistics counts as employed people who work part-time,but would prefer to work full-time.Suppose the people who had part-time jobs,but wanted full-time jobs,were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

Accepted Answer

The answer of The Bureau of Labor Statistics counts as...

Question 11

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat.This lumberjack would be

Accepted Answer

The lumberjack lost his job due to a permanent change in the structure of the economy (timber cutting restrictions) rather than any temporary economic fluctuations. Therefore, he is structurally unemployed.

Question 12

According to the text,economists consider full employment to occur when

Accepted Answer

Economists consider full employment to occur when the unemployment rate consists of only frictional and structural unemployment, excluding cyclical unemployment. This reflects a situation where all unemployment is due to the normal turnover in the labor market (frictional) or due to mismatches between workers' skills and job requirements (structural), rather than economic downturns.

Question 13

During the Great Depression,cyclical unemployment increased as the recession continued.This increase in cyclical unemployment

Accepted Answer

Cyclical unemployment is directly related to the macroeconomic situation of an economy, such as a recession or a depression, and varies with the business cycle. The natural rate of unemployment, however, is determined by structural factors in the labor market, such as market inefficiencies, and is not affected by short-term cyclical fluctuations. Therefore, an increase in cyclical unemployment during the Great Depression would not have affected the natural rate of unemployment.

Question 14

Frictional unemployment is the result of

Accepted Answer

The answer of Frictional unemployment is the result of
...

Question 15

Full employment is not considered to be zero unemployment,because

Accepted Answer

Full employment acknowledges the existence of frictional unemployment, which occurs when people are between jobs or are entering the workforce. This means that even when the economy is at full employment, there will still be some level of unemployment because people are in the process of finding new jobs, not because there are no jobs available.

Question 16

Refer to the Article Summary.Explain how the declining labor force could have led to the decrease in the unemployment rate.

Accepted Answer

The answer of Refer to the Article Summary.Explain how the...

Question 17

In 2015,JP Morgan Chase announced that it was laying off 5,000 employees.The laid-off employees who were not able to find jobs at another bank due to a permanent decline in demand in the banking industry would be considered

Accepted Answer

Structurally unemployed workers are those whose skills are no longer in demand in their industry or region, and as a result, they may struggle to find new employment. The JP Morgan Chase employees who were laid off due to a permanent decline in demand in the banking industry fit this description.

Question 18

How would the unemployment rate and the labor force participation rate change if discouraged workers were counted as unemployed rather than counted as out of the labor force? Show using the formula for both measurements.

Accepted Answer

The answer of How would the unemployment rate and the...

Question 19

The natural rate of unemployment is the amount of unemployment

Accepted Answer

The natural rate of unemployment refers to the level of unemployment that exists in the economy when it is operating at its potential output level. This includes both frictional unemployment (which occurs when workers are in between jobs) and structural unemployment (which occurs when there is a mismatch between available jobs and workers' skills). It does not include cyclical unemployment, which is caused by economic downturns or recessions. Therefore, choice B - equal to frictional plus structural unemployment - is the best answer as it accurately describes the components of the natural rate of unemployment.

Question 20

The advice to "keep searching,there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment?

Accepted Answer

Frictional unemployment refers to the temporary unemployment that occurs when people are searching for new jobs or are transitioning between jobs. Therefore, the advice to "keep searching" would be most appropriate for individuals experiencing frictional unemployment who are actively seeking employment opportunities.

Quiz 9: Unemployment and Inflation