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