12. At the start of a recovery following a recession, employment begins to rise, and the news media reports data on job growth. As a result, discouraged workers start to return to the labor force. As a result of the above events, the unemployment rate would rise or fall. first rise and then fall. rise. fall.

In which of the following cases will we observe unemployment? the quantity of labor demanded is greater than the quantity of labor supplied at the going wage rate. the wage is below the level that balances supply and demand for labor. there is a shortage of workers. the quantity of labor demanded is less than the quantity of labor supplied at the going wage rate.

Scenario 1. Assume that frictional unemployment is 25; structural unemployment is 50; cyclical unemployment is 150; discouraged workers = 75; employed workers = 750; underemployed workers = 200. Use this information to answer the following 5 questions.Refer to Scenario 1.  Is the economy at full employment?   Question 15 options:   a)  Yes, because the unemployment rate is below 10%   b)  No, because the unemployment rate exceeds the natural rate of unemployment   c)  No, because cyclical unemployment exists in the economy   d)  Answers B and C are both correct

a) What is the relationship of frictional, structural, seasonal and cyclical unemployment to the full-employment rate of unemployment (alternatively known as the natural rate of unemployment)? Discuss.

Q4. Assess whether the following would be counted as unemployed or not unemployed in the Current Employment Statistics survey. Write next to the sentence if it’s: A. Not unemployed or B. Unemployed

19 If the economy is at full employment, which of the following is true?   Group of answer choices There is no cyclical unemployment. There is zero unemployment. There is no structural unemployment. There is no frictional unemployment.

Unemployment rates have been higher in many European countries in recent decades than in the United States. Is the main reason for this long-term difference in unemployment rates more likely to be cyclical unemployment or the natural rate of unemployment? Explain briefly.

Suppose an economy is experiencing the following rates of unemployment by type.     Rate (%) Cyclically Unemployed 1.5 Frictionally Unemployed 3.3 Structurally Unemployed 2.6   The actual unemployment rate is   Multiple Choice   7.4 percent and the natural rate of unemployment is 5.9 percent.   5.9 percent and the natural rate of unemployment is 7.4 percent.   7.4 percent and the natural rate of unemployment is 10.1 percent.   10.1 percent and the natural rate of unemployment is 7.4 percent