Unemployment

Discouraged workers in

the economy implies that the measurement of unemployment...

• understates the true unemployment rate

• overstates the true unemployment rate

• correctly measures the true unemployment rate

• doubles the unemployment rate

If operators are fired and replaced with computer technology, the operators would be considered

• frictionally unemployed

• structurally unemployed

• cyclically unemployed

• dissatisfiededly unemployed dissatisfiededly unemployed

If actual GDP is less than potential GDP...

• Actual unemployment exceeds the natural unemployment rate

• Actual unemployment rate is less than the natural rate

• No cyclical unemployment is present

• Hyperinflation is present Hyperinflation is present

Cyclical unemployment

• Describes recent college graduates

• Lasts longer than 6 months

• Describes employees moving from one job to another

• Increases inflation Increases inflation

The unemployment rate is the ratio of

• unemployed to labor force

• employed to labor force

• seeking employment to labor force

• dissatisfied to labor force

Seasonal unemployment

• Describes recent college graduates

• Is predictable

• Is a result of changes in technology

• Slows the economy Slows the economy

The unemployment rate will drop if

• A person is hired into a new job

• Someone who was previously laid off is rehired

• An unemployed person stops looking

• ALL of these answers are CORRECT

The natural rate of unemployment is equal to

• frictional plus cyclical

• cyclical plus structural

• frictional plus seasonal

• structural plus frictional

Which of these people is officially unemployed

• A secretary who took 6 months off for maternity leave

• An aspiring actress who waits tables but would rather act

• Maid who got fired and will start a new job in 2 weeks

• A student who only works 4 hours a week in the library

What is the unemployment????

• decisions to work based on each individuals' valuation of their own work

• proportion of younger workers in the labor force

• the situation of actively looking for employment but not being currently employed.

• person who is simultaneously an income earner,