Econ chapter 9
Frictional unemployment
Short-term unemployment that arises from the process of matching workers with jobs.
Which of the following is not one of the conditions someone needs to meet to be counted as unemployed?
They had worked only one hour per week during the previous four weeks.
Cyclical unemployment:
Unemployment causes by a business cycle recession.
Structural unemployment:
Unemployment that arises from a persistent mismatch between the skills and attributes of workers and the requirements of jobs.
In the modern U.S. economy, the typical unemployed person stays unemployed for
a relatively short time, less than six months.
The consumer price index is the
average of the prices of the goods and services purchased by a typical urban family of four.
What index is used to measure the average prices paid by a typical family? An average of the prices of the goods and services purchased by a typical family is the:
consumer price index (CPI).
As output (GDP) is increasing, the amount of cyclical unemployment would
decrease
When an unemployed person drops out of the labor force, it
does not affect the employment-population ratio.
The labor force equals the number of people
employed plus unemployed.
The short-term unemployment that arises from the process of matching workers with jobs is called
frictional unemployment.
When the economy is at full employment,
he unemployment rate is greater than zero. the natural rate of unemployment prevails. all remaining unemployment is either frictional or structural.
The percent increase in the CPI from one year to the next is a measure of the
inflation rate.
The Bureau of Labor Statistics would categorize a retiree who is not working as
out of the labor force
The employment-population ratio measures the
percentage of the working age population that is employed.
The unemployment rate
rises during recessions, falls during expansions, and is always above zero.
the type of unemployment most likely to result in hardship for the people who are unemployed is
structural because this type of unemployment requires retraining to acquire new job skills.
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called
structural unemployment.
When the economy is at full employment, unemployment is equal to
the natural rate of unemployment.
The natural rate of unemployment is
the sum of structural unemployment and frictional unemployment.
When an unemployed person drops out of the labor force, the unemployment rate
understates the true degree of joblessness in the economy.
Cyclical unemployment
unemployment caused by a recession.
The three types of unemployment are
frictional, structural, and cyclical unemploment.
