Exam 13: Unemployment: the Legacy of Recession, Technological Change, and Free Choice

Suppose at full employment, the level of GDP is $15 trillion. Currently output is $13.5 trillion. The most appropriate stabilization policy would be to:

For society, the greatest cost of unemployment is:

Use the following information to answer the following questions. -Refer to Labor Force. Calculate the number of persons who are unemployed.

Temporary unemployment arising from the job search process is known as:

Unemployment that occurs during the contractionary phase of the business cycle is known as:

With both structural and frictional unemployment, there are not enough jobs for prospective workers.

Stabilization policies will probably be needed to deal with unemployment if:

Beth recently received a degree in management. Because of a downturn in the economy, however, she has been unable to find a job. She is said to be cyclically unemployed.

Use the following diagram to answer the following questions. -Refer to Diagram 13-1. Suppose the economy is currently in equilibrium at point A. If government increases spending, this would most likely:

Fiscal policy refers to:

Active macroeconomic (stabilization) policies are government policies intended to maintain full employment and a reasonably stable price level.

Most economists think that expansionary fiscal and monetary policies would have little effect on unemployment rates in most European countries.

Monetary policy is conducted by:

An increase in the minimum wage is likely to:

Use the following information to answer the following questions. Homemakers 55,000 Retired Persons 25,000 College Students 32,000 Part-time Workers 39,120 Full-time Workers 523,700 Persons 16 years of age and older actively seeking employment 23,680 Individuals on strike 5,500 -Refer to Homemakers. The number of persons in the civilian labor force is:

Full employment occurs when:

Which of the following best describes structural unemployment?

For the individual, the most obvious cost of unemployment is:

Use the following information to answer the following questions. -Refer to Labor Force. Calculate the unemployment rate to the nearest hundredth.

Suppose the population 16 of years of age or older is 3,000,000, the number of people in the civilian labor force is 2,225,000, and the number of unemployed is 117,925. The unemployment rate is: