MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 10.A, Problem 2SQ
To determine

The full-employment level of GDP.

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An economy is said to achieve “full employment” when:   a.     The unemployment rate is equal to zero. b.     The unemployment is equal to the cyclical plus frictional unemployment. c.     The unemployment is equal to the frictional plus structural unemployment. d.     The unemployment is equal to the cyclical plus structural unemployment.
The normal rate of unemployment that persists in the economy in the long run is called    a. frictional unemployment.   b. structural unemployment.   c. cyclical unemployment. d. the natural rate of unemployment.
Which of the following statements is TRUE? a. the unemployment rate does not tell anything about the duration of unemployment.  b. the duration of unemployment increases during economic expansions.  c. the duration of unemployment decreases during recessions.  d. both A and B are correct.
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