Macro Chapter 9 – Flashcards with Answers
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If the unemployment rate turns out to be high or higher than anticipated, we would expect
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that stock prices are more likely to fall
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The Bureau of Labor Statistics would categorize a retiree who is not working as
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out of the labor force
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The labor force equals the number of people
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employed plus unemployed
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Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will
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remain constant
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Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. The labor force participation rate will
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the labor force participation rate to decrease
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Which of the following cause the unemployment rate as measured by the B of LS to understate the true extent of joblessness?
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discouraged workers
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Which of the following cause the unemployment rate as measured by the BLS to overstate the true extent of joblessness?
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unemployed persons falsely report themselves to be actively looking for a job
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Using a broader measure of the unemployment rate where discourages workers and part-time workers who wished wo work full time were counted as unemployed, the BLS estimates the unemployment rate in Sept. 2011 would have _____ compared to the measured unemployment rate
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increased by more than 7 percentage oiubts
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An advantage of the established survey over the household survey of the labor market is that the establishment survey
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is based on actual payrolls, rather than on unverified answers
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Frictional unemployment is the result of
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the search process of matching workers with jobs
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A student who just graduated from college but has not found a job would most likely be
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frictionally unemplyed
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Cyclical unemployment is the result of
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a slowdown in the economy
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Structural unemployment is the result of
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a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs
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According to the text, economists consider full employment to occur when
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the unemployment rate consists of only frictional and structural unemployment
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If cyclical unemployment is eliminated in the economy, then
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the economy is considereed to be at full employment
