Econ - Ch. 13 Economic Challenges

When individuals lose jobs due to fall in aggregate demand, often during an economic recession.

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment

Individuals are unemployed due to a lack in skills that modern industries need, change in technology.

• Cyclical Unemployment

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

When an individual is unemployed because they are looking for a new job.

• Frictional Unemployment

• Cyclical Unemployment

• Structural Unemployment

• Seasonal Unemployment

When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas.

• Seasonal Unemployment

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

Sum of the employed and the unemployed

• Employed

• Unemployment

• Labor Force

You have no work in the previous week but were available to and have been actively pursuing a job over the last month.

• Employed

• Unemployed

Unemployment Rate formula

• (Unemployed/ Labor force) * 100

• (Employed/ Unemployed) * 100

• (Labor force/ Employed) * 100

Find the unemployment rate.

Labor force= 10,200

Employed = 4,980

• 55.44 %

• 48.82 %

• 51.18%

• none of the above

Sally is stopped looking for a job after 6 months of being laid off. She is considered..

• Seasonally Unemployed
• Frictionally Unemployed
• A Discouraged Worker
• Under Employed

Full Employment means a 0% unemployment rate

• True
• False