Font size
WorksheetsU4: Unemployment & Business Cycle Review
Total questions: 26
Worksheet time: 2mins
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
Macroeconomics approaches the study of economics from the viewpoints of
individual firms
individual consumers
government units
the entire economy
If a news headline says, "Finally!!! 2 straight months of increased jobs."
Where on the business cycle is the current economy?
Peak
Contraction
Trough
Expansion
Which of the following is an expansion, or recovery?
A
B
C
D
If GDP falls for at least two quarters, it is considered what stage of the business cycle?
Expansion
Recession
Prosperity
Recovery
At what point in the business cycle is GDP the highest?
Peak
Expansion
Recovery
Trough
Unemployment is?
Workers that are actively looking for a job but aren’t working.
The percent of people in the labor force who want a job but are not working.
Temporary unemployment or being between jobs.
Changes in the labor force make some skills obsolete.
Business cycle has four phases:
expansion, peak, contraction, trough
peak, expansion, concept, decline
contraction, peak, expansion, uprise
trough, peak, decline, uprise
Which of the following is a peak?
A
B
C
D
Which of the following is a trough?
A
B
C
D
Check all that apply.
Which of the following goal(s) is mostly likely to be in trouble at the peak?
equity
full employment
growth
price stability
Check all that apply.
Which of the following goal(s) are strong at the peak?
equity
full employment
growth
price stability
If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
If a news headline says, "Finally!!! 2 straight months of increased jobs."
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
If a news headline says, "6 straight years of growth! How much longer can the economy keep up?"
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
If People are optimistic about the Economy they will tend to the what with their money?
More likely to spend their Money
More likely to put money in a savings account
More likely to hold their money in their mattress and save it.
Leave the Country and find a better economy
How do High-interest rates change people borrowing money habits?
They Borrow money to buy things that are way out of their budget.
People will buy fewer houses, cars, and big-ticket items like TVs
Use their Credit Cards more often
Will take out more loans
