L17 Business Cycles and Unemployment

Multiple Choice

Was the recession following the housing bubble caused by a demand shock, or a supply shock?

• Demand shock

• Supply shock

• I'm not sure

Multiple Choice

Was the recession of 2020 caused by a demand shock, or a supply shock?

• Demand shock

• Supply shock

• I'm not sure

Multiple Choice

In a small town with a population of 100 adults, 63 are working, 7 are not working but are looking for work, and 30 are not working and not looking for work. What is the labor force participation rate in this town?

• 63%

• 70%

• 90%

• 37%

Multiple Choice

In a small town with a population of 100 adults, 63 are working, 7 are not working but are looking for work, and 30 are not working and not looking for work. What is the unemployment rate in this town?

• 7%

• 70%

• 10%

• 37%