M41.3: Types of Unemployment

The Natural Rate of Unemployment is composed of : (Check ALL that apply)

- Frictional unemployment - Structural unemployment

The Natural Rate of Unemployment is composed of:

- Frictional unemployment - Structural unemployment

Which of the following is an example of someone that is frictionally unemployed? (Check ALL that apply)

- a college graduate looking for their first job - a stay at home parent looking for a job now that their child is in kindergarten - a person that quit their job because they hated it - a person looking for a job because they moved to another city

Which of the following is an example of someone that is frictionally unemployed? (Check ALL that apply)

- a recent college graduate looking for their first job - a stay at home parent looking for a job now that their child is in kindergarten - a person looking for a job because they moved to another city

Which of the following is a reason that the actual wage rate may be higher than the market equilibrium wage? (Check ALL that apply)

- a union collectively bargained wage rate - government set minimum wage - an efficiency wage

Which of the following are types of unemployment?

Cyclical Structural Frictional Seasonal

(Check ALL that apply) Which of the following are types of unemployment?

Structural Frictional Seasonal Cyclical

Unemployment that occurs when people lose their jobs due to some technological improvement. (Think people that used to work at video stores that rented movies before Netflix and Redbox existed)

Structural unemployment

Structural unemployment tends to last longer than frictional unemployment.

True

(Loop back to 05:30) The full-employment unemployment rate in the economy has been achieved when:

cyclical unemployment is zero

A person that is unemployed because the economy is contracting and business has slowed down causing lay-offs would be considered ___________ unemployed.

cyclically

As Real GDP decreases, we typically see:

increases in cyclical unemployment

Which of the following are macroeconomic goals? (Check ALL that apply)

low unemployment

What she just explained, most closely resembles a:

minimum wage

Structural unemployment means there are:

more people seeking work than there are jobs in a particular industry

Contestant #02 could also be considered:

discouraged

A person that is unemployed while they move from Ohio to California would be considered ___________ unemployed.

frictionally

When a recent college graduate begins looking for work, this person would be classified as:

frictionally unemployed

A person that lost their job when the factory closed down and moved to China would be considered ___________ unemployed.

structurally

There will always be some amount of cyclical unemployment.

False

Business cycles are usually all of the same length and severity.

False

Frictional unemployment is typically of longer duration than the other types of unemployment.

False

When the actual unemployment rate equals the natural rate of unemployment, the economy is achieving:

Full employment

Unemployment rises as the economy experiences ________________ in the business cycle.

a downswing

Structural unemployment exists when there is:

a mismatch between an employee's skills and an employer's needs

The amount of structural unemployment can be seen as the distance between the demand curve for labor and the supply curve for labor at wages:

above the equilibrium wage

(Loop back to 05:30) As Real GDP decreases, we can expect the actual unemployment rate to:

be greater than the natural rate of unemployment

Unemployment _________ as the economy experiences an upswing in the business cycle.

declines