1. Increases in the unemployment rate typically indicate: a. that workers are more confident...

Question:

1. Increases in the unemployment rate typically indicate:

a. that workers are more confident about finding new jobs.

b. that aggregate disposable income is increasing.

c. periods of economic expansion.

d. periods of economic recession.

2. Which of the following statements is TRUE?

a. Economic expansions are always periods of falling unemployment.

b. There is a generally strong negative relationship between growth in the economy and the rate of unemployment.

c. Unemployment only rises during recessions.

d. There is a generally strong positive relationship between growth in the economy and the rate of unemployment.

3. Unemployment associated with the time workers spend in job search is called:

a. frictional unemployment.

b. structural unemployment.

c. cyclical unemployment.

d. natural unemployment.

4. Unemployment that results when there are more people seeking jobs in a labor market than there are jobs available at the current wage rate is called:

a. frictional unemployment.

b. structural unemployment.

c. cyclical unemployment.

d. natural unemployment.

5. A binding minimum wage is likely to cause:

a. frictional unemployment.

b. structural unemployment.

c. cyclical unemployment.

d. natural unemployment.

Unemployment:

Economists use the unemployment rate as a measure of how well an economy is doing, among other indicators. Unemployment is classified in several different ways, depending on the reason for the unemployment: frictional, structural, cyclical, or seasonal.

Answer and Explanation: 1

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1. Increases in the unemployment rate typically indicate "d. periods of economic recession." In a recession, output falls and unemployment...

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Three Types of Unemployment: Cyclical, Frictional & Structural

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Chapter 6 / Lesson 3
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Learn the various types of unemployment. See the definition and causes of frictional, cyclical, structural, and other forms of unemployment with examples.


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