Unemployment

Which of the following best defines unemployment?

• The state of being able to work and actively seeking work, but unable to find employment

• The state of being able to work, but choosing not to

• The percentage of the labour force that is able and actively seeking work, but cannot find employment

• The total number of people who do not work

Which of the following are criticisms of unemployment rate statistics?

• The underemployed are counted as being employed

• Discouraged workers (who give up searching for employment) are not counted as part of the labour force

• Survey inaccuracies

• It provides information about the relative health of the economy

If an economy is operating at its full employment level of output, labour markets have ___________, and the aggregate demand for labour __________ the aggregate supply of labour.

• Overheated, is greater than

• Overheated, equals

• Reached an equilibrium, equals

• Reached an equilibrium, is smaller than

What is the formula of unemployment rate???

• =(labor force/unemployed)*100%

• =(GDP*labor force)/100%

• =(unemployed/labor force)*100%

• none of them

What is the natural rate of unemployment (NRU)?

• is defined as the percentage of unemployed workers in the total labor force

• is defined an economy if there were no cyclical unemployment. In other words, it's frictional unemployment plus structural unemployment.

• refers to an overall increase in the Consumer Price Index (CPI),

• none of them

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

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment

If auto workers lose their jobs as the industry becomes far more technically intensive and capital intensive, what form of unemployment occurs?

• Cyclical

• Seasonal

• Frictional

• Structural