Principles of Macroeconomic Ch. 6

Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. what is the unemployment rate?

185-170=15 15/200 x 100 .......7.5 %

from 1929 to 2009 the average unemployment rate in the United States was approximately

5.7 percent

the highest unemployment rate in the US history was about

52 percent in 1939

The working-age population consists of all the people in the population

aged 16 and over who are not in jail, hospitalized, an institution, or in the U.S. Armed Forces

job losers are people who

are laid off

cyclical unemployment is

created by a recession

at full unemployment there is no

cyclical unemployment

the type of unemployment that arises from a decrease in real GDP is called

cyclical unemployment

In the Current Population Survey, a person is considered unemployed in the person

does not have a job and is actively looking for a job

Involuntary part-time workers are not working more hours due to

economic reasons

which type of unemployment is a permanent and healthy phenomenon in a dynamic economy

frictional

which type of unemployment is a permanent and healthy phenomenon in a dynamic economy?

frictional

as firms search for the best employees to fill an opening and the unemployed search for the job that best fits their skills the economy experiences

frictional unemployment

natural unemployment equals the some of

frictional, seasonal, and structural unemployment

Rosina Gonzales quit her job in PA and moved to CA to be closer to her family. She is currently looking for work so she would be considered

frictionally unemployed

bill just graduated with his degree in economics. Through Career services he submitted his resume to several companies and he will visit them during the next two weeks...bill is considered?

frictionally unemployed

Rob is considered unemployed in the current population survey if he

has looked for a job in the last four weeks but he has not found a job

a main reason for the low unemployment rate form 1995 though most of the 2000s was because of

higher oil prices

the biggest source of unemployment is

job losers

the unemployment rate is the number of people unemployed decided by the

labor force, then multiplied by 100

job leavers are people who

leave a job voluntarily

part-time workers are defined as people who are working

less than 35 hours per week

the labor force is the

number of employed people plus the number of unemployed people

keith has just lost his job as a life guard at the beach when summer ended keith is

seasonally unemployed

a marginally attached worker is

someone who does not have a job but is available and willing to work and has make specific but unsuccessful efforts to find a job during the past 4 weeks

an employee who is fired from his or her job because he or she lacks the skills required to accomplish the task is part of ______ unemployment

structural

full employment occurs when the

structural unemployment rate equals the frictional unemployment rate

after 15 years with ford motor corporation, one summer cameron loses his job his boss explained that the position has been downsized after the technological advances in automobile production

stucturally unemployed

in part the increase in the labor force participation rate in the U.S. over the last 50 years can be attributed to

technological change in the home increasing the time available for paid employment

structural unemployment is the result of

technological change or foreign competition

In the United States over the last 50 years

the labor force participation rate for women has increased about 60%

in the U.S. the highest unemployment rates occur amount

black teenagers

withdrawals are people who

decide to stop looking for a job

a reduction in unemployment compensation will

decrease the amount of frictional unemployment

people who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called

discouraged workers

Suppose a 23 year old graduate student is looking for a full time job but can only find a part time job. He or She would be categorized in the Current Population Survey as __________ when calculating the unemployment rate.

employed

the working-age population includes

employed and unemployed people over the age of 16

cyclical unemployment

fluctuates over the business cycle

since 1959 the labor force participation rate in the United States has

increased for women and decreased for men

the unemployment rate is the

percentage of the labor force that does not have a job

The Bureau of Labor Statistics (BLS) compiles information about employment by

performing a monthly survey of 60,000 households

as the unemployment rate increases

real GDP decreases

frictional unemployment is the result of

the normal process of jobs being created and destroyed

the labor force consist of

the number of people in the working-age population who are employed or unemployed

potential GDP is reach when

there is no cyclical unemployment

To be classified as employed...

you must work at least 1 hour per week at a paid job or 15 hours or more as unpaid workers in a family business