ch15_unemployment

ch15_unemployment - Chapter15 UnemploymentandItsNaturalRate...

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Chapter 15 Unemployment and Its Natural Rate 1. The natural rate of unemployment is the a. unemployment rate that would prevail with zero inflation. b. rate associated with the highest possible level of GDP. c. difference between the long-run and short-run unemployment rates. d. amount of unemployment that the economy normally experiences. ANSWER: d. amount of unemployment that the economy normally experiences. TYPE: M DIFFICULTY: 1 SECTION: 15.0 2. Cyclical unemployment refers to a. the relation between the probability of unemployment and a worker’s changing level of experience. b. how often a worker is likely to be employed during her lifetime c. year-to-year fluctuations of unemployment around its natural rate. d. long-term trends in unemployment. ANSWER: c. year-to-year fluctuations of unemployment around its natural rate. TYPE: M DIFFICULTY: 1 SECTION: 15.0 3. Cyclical unemployment is closely associated with a. long-term economic growth. b. short-run ups and downs of the economy. c. fluctuations in the natural rate of unemployment. d. seasonal fluctuations in spending. ANSWER: b. short-run ups and downs of the economy. TYPE: M DIFFICULTY: 1 SECTION: 15.0 4. The natural rate of unemployment a. is a constant. b. is the desirable rate of unemployment. c. cannot be altered by economic policy. d. None of the above are correct. ANSWER: d. None of the above are correct. TYPE: M DIFFICULTY: 1 SECTION: 15.0 5. Which of the following is correct? a. Some degree of unemployment is inevitable. b. Other things the same an increase in the number of people who are unemployed decreases real GDP. c. Cyclical unemployment is inversely related to short-run economic fluctuations. d. All of the above are correct. ANSWER: d. All of the above are correct. TYPE: M DIFFICULTY: 1 SECTION: 15.0 6. Data on unemployment is reported a. weekly. b. monthly. c. quarterly. d. yearly. ANSWER: b. monthly. TYPE: M DIFFICULTY: 1 SECTION: 15.1 149
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150 Chapter 15/Unemployment and Its Natural Rate 7. The BLS produces data on a. unemployment. b. types of employment. c. length of the average workweek. d. All of the above are correct. ANSWER: d. All of the above are correct. TYPE: M DIFFICULTY: 1 SECTION: 15.1 8. Which of the following is incorrect? a. The unemployment rate is computed using the number of unemployment insurance claims filed. b. Each adult included in the unemployment statistics is classified as employed, unemployed, or not in the labor force. c.
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ch15_unemployment - Chapter15 UnemploymentandItsNaturalRate...

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