L17 Business Cycles and Unemployment

Multiple Choice

What organization officially declares what periods of time the United States has been in a recession?

• The Bureau of Economic Analysis

• The U.S. Treasury

• The National Bureau of Economic Research

• The Federal Reserve

Multiple Choice

When the housing bubble burst, many people faced mortgage foreclosures and their consumption spending decreased. Banks became more cautious about lending money as they struggled to assess how risky their asset holdings really were. Does this sound like a demand-side shock, or a supply-side shock?

• Demand side shock

• Supply side shock

Multiple Choice

The Bureau of Labor Statistics find that in a county with a population of 100,000 adults:

  72,000  Employed

    8,000  Not employed, but actively looking for a job

  20,000  Not employed and not looking for jobs

What is the Labor Force Participation Rate?

• 72%

• 80%

• 90%

• 100%

Multiple Choice

The Bureau of Labor Statistics find that in a county with a population of 100,000 adults:

  72,000  Employed

    8,000  Not employed, but actively looking for a job

  20,000  Not employed and not looking for jobs

What is the Unemployment Rate?

• 8%

• 10%

• 11%

• 80%

Multiple Choice

If many people who are looking for full-time work are only able to find part-time work, the official unemployment rate will

• look BETTER than the job market reality

• look WORSE than the job market reality

Multiple Choice

When workers become "discouraged" and quit job-hunting after many months of unemployment, the official unemployment rate will

• Look BETTER, even though the situation has not improved

• Look WORSE, since unemployment is continuing

• Look the SAME, even though the situation has improved