Ch 19 Unemployment

Unemployment is

• percentage of the labor force able and actively seeking work

• the people willing and able to work who are looking for work but can't find it

• being willing and able to work but choosing not to

• total number of people who don't work

The labor force is

• total number of employed people in an economy

• total number of people minus the people voluntarily employed

• total number of working age people who are employable

• total number of working age people

At full employment, labor markets have ____ and the Aggregate demand for labor _____ the aggregate supply of labor.

• Reached equilibrium; equals

• reached equilibrium; is greater than

• overheated; is greater than

• overheated; equals

Which is NOT a consequence of unemployment

• increase in general price level (inflation)

• Brain-drain caused by emigration

• Budget deficits

• lower aggregate demand

Which occurs when people are out of work because they are moving between jobs?

• Cyclical

• Frictional

• Seasonal

• Structural

Which occurs when people are jobless because the job is prone to trends and vacations?

• Cyclical

• Frictional

• Seasonal

• Structural

Which occurs when there is an overall lack of aggregate demand?

• Cyclical

• Frictional

• Seasonal

• Structural

Which occurs when peoples' skills are no longer demanded as the economy evolves?

• Cyclical

• Frictional

• Seasonal

• Structural

A deflationary gap diagram is used to show which type of unemployment in the economy?

• Cyclical

• Frictional

• Seasonal

• Structural

Which is another term for "demand deficient" unemployment?

• Cyclical

• Frictional

• Seasonal

• Structural