AP Econ Review Unit 4

The full employment unemployment rate means an unemployment rate of about

5%

Assuming the total population is 100 mil, the civilian labor force is 50 mil, and 47 are employed, the un rate is

6% (3/50 x100)

Assume the NRU in the Us econ is 5% and the actual rate of unemployment is 9%. According to Okun's law, the gdp is

8%

The phase of the business cycle in which real gdp declines is called

A recessionary

The type of un associated with recessions is called

Cyclical

Anne Kasperson works in her own home as a full time caretaker and homemaker. Officially, she is

Not in the labor force

Okuns law

Shows the relationship btw UN and the size of the GDP gap

Which of the following constitute the un occurring at the NRU

Structural and fructional

Eckstein has lost her job in a MA textile plant because of import competition. She intends to take a short course in electronics and move to CA where she anticipates a new job will be available. We cay say that she is faced with

Structural un

Kimberly voluntarily quit her job as an insurance agent to return to school full time to earn an MBA degree. With degree in hand she is now searching for a position in management. Kimberly presently is

frictionally unemployed

The phase of the business cycle in which real gdp is at a minimum is called

trough