In Exhibit 1, as production increases, firms resort to offering higher wage rates to attract the dwindling supply of unemployed resources in:     Group of answer choices the segment labeled ab. the segment labeled bc. the segment labeled cd. both segment bc and segment cd.

The natural rate of unemployment Multiple Choice   means that the economy will always operate at that rate.   means that the economy will always realize its potential output.   is equal to the total of frictional and structural unemployment.   is a fixed unemployment rate that does not change over time.

Question C only- what is the labor force participation rate of Macroland for people between the ages of 18-65 in January.

Adult Population (civilian, non-institutionalized) 14,000 Employed 10,000 Unemployed 2,100 Not in Labor Force 1,900   The labor force participation rate is about: Group of answer choices 86.4% 13.6% 66.6% none of these is even close

FILL IN THE BLANKS The government utilizes fiscal policies to stimulate aggregate demand and reduce this type of unemployment. When the government subsidizes programs to train workers in new skills because of changes in technology, it is trying to reduce the amount of                   unemployment. If the government reduces the number of weeks an unemployed worker can collect unemployment insurance payments, then it is likely that                unemployment numbers would decrease. There is a relationship between a nation’s unemployment rate and its production which is represented by Okun’s Law. The law predicts that that for every 1% increase in unemployment there will be a                  decrease in gross domestic product (GDP).