U4: Unemployment & Business Cycle Review

In the U.S., an unemployment rate of 4% - 5% is considered

• full employment

• unemployment rate

• labor force

• underemployed

This reflects those who are actively seeking employment.

• full employment

• unemployment rate

• labor force

• underemployed

This reflects those who are actively seeking employment AND those who are currently employed.

• full employment

• unemployment rate

• labor force

• underemployed

You have the least amount of control over this since it is based on the ups and downs of the business cycle.

• frictional unemployment

• seasonal unemployment

• cyclical unemployment

• structural unemployment

As an outdoor lifeguard, you don't have control over your end date, but you expect it and can plan for it.

• frictional unemployment

• seasonal unemployment

• cyclical unemployment

• structural unemployment

If Mrs. Murat left her job to go back to college to get her administration degree.

• frictional unemployment

• seasonal unemployment

• cyclical unemployment

• structural unemployment

Which type of unemployment exists in any economy due to people being in the process of moving from one job to another?

• Cyclical unemployment

• Frictional unemployment

• Seasonal unemployment

• Structural unemployment

A major technology company just laid off all of their employees with 1-3 years experience because AI has replaced all of those jobs. Which type of unemployment is this scenario?

• Seasonal

• Cyclical

• Structural

• Frictional

What is the formula for the unemployment rate?

• (labor force/unemployed)*100% = unemployment rate

• (unemployed/labor force)*100% = unemployment rate

• (GDP*labor force)/100% = unemployment rate

• (unemployed)/( labor force) = unemployment rate

How many phases make up the business cycle?

• 2

• 4

• 6

• 8