AP Macroeconomics: Unit 2 - Unemployment

What measure shows what percentage of the eligible workers do not have jobs?

• Gross Domestic Product

• Unemployment Rate

• Inflation Rate

When people are in the process of looking for a job after being fired or are transitioning to a new position, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

When people can't find a job because of a lack of demand for their skills or type of labor, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

When people can't find a job because the economy is not doing well due to a recession, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

In the United States, a healthy economy should have an unemployment rate of 4-6%.

• True

• False

Of the following, which is the best example of structural unemployment?

• A computer programmer who quits her job to move to a warmer climate
• A construction worker who loses his job in the winter
• An auto worker who loses her job during a recession
• A steel worker who is replaced by a robot

Which of the following is true about the natural rate of unemployment?

• It can vary over time.
• It is 2 percent orless of the civilian laborforce.
• It is equal to the structural unemployment rate.
•  It allows for some frictional and cyclical unemployment.

Which of the following would NOT be considered part of the labor force?

• Tyler, a banker who feels he is overqualified for his job.
• Savana, who is unemployed but has attended  three job interview in the last month.
• Ricky, who has a part-time job but wants a full-time job.
• Garrett, a stay-at-home dad.

During a recession, which of the following is likely to occur?

• an increase in real wages
• an increase in production
• and increase in the GDP growth rate
• an increase in the unemployment rate

The unemployment rate is calculated as the number of

• unemployed persons divided by number of employed persons
  
• persons in the labor force divided by the number of unemployed
  
• unemployed divided by size of the labor force
  
• employed persons divided by number of unemployed persons