Chapter 11- Unemployment

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's labor force is

110 million

In the United States, ______ of workers earn more than the median wage; in France, ______ of workers earn more than the median wage.

50 percent; 50 percent

If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's labor force participation rate is

55 percent.

The labor force participation rate is highest among those

between 25 and 54 years of age.

Unemployment correlated with the business cycle is called

cyclical unemployment.

Which type of unemployment is an outcome of economist Joseph Shumpeter's creative destruction process within an industry?

frictional unemployment

During recessions the unemployment rate

increases

The percentage of adults in the labor force is the

labor force participation rate.

Both __________ and _________ reduce the quantity of labor demanded.

minimum wages; union wages

Oil shocks, the shift from manufacturing to service jobs, and the use of new technologies are reasons for _____unemployment.

structural

The Keynesian explanation for cyclical unemployment is

that wage demands are too high relative to falling prices.