Macroeconomics Chapter 8

The labor supply curve is positively sloped because:

more people are willing to work at high wages than at low wages.

The rate of unemployment is found by dividing the:

number of people not working but looking for work by the number of people not working but looking for work plus the number of people employed.

People who are counted as unemployed by the Bureau of Labor Statistics are:

people without a job who are actively seeking a job.

Unanticipated inflation:

reduces the real value of debt.

Look at the table Labor Force Data. Suppose the labor force participation rate is 70%. The number of unemployed adults is:

8 million.

Look at the table Population Data for Estill County. What is the labor force participation rate?

81%

Which of the following is an example of cyclical unemployment?

An autoworker is laid off because a recession has caused a decline in sales.

Last week Stephanie quit her job as a copywriter at an advertising agency. She has spent the past few days browsing the help wanted ads but hasn't found anything that matches her skills. Stephanie is best classified as:

frictionally unemployed.

Firms pay an efficiency wage because:

it reduces the risk of losing the best workers.