Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 22, Problem 4MCQ
To determine
To explain the reason behind the increase in
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How does the unemployment rate behave over the business cycle?
The unemployment rate _______.
A.
remains relatively constant over the business cycle at an average of 5.7 percent
B.
equals 10 percent during a recession and falls to zero during an expansion
C.
rises during a recession and falls during an expansion
D.
equals 100 minus the employment-population ratio over the business cycle
When the economy goes into recession, the biggest increase in unemployment is
O A. the combination of structural and frictional as few new jobs are created
B. cyclical because jobs are lost in many industries as they cut production
O C. structural because jobs are lost in most states
O D. frictional because the creation of jobs slows
Click to select your answer.
Which type of unemployment is experienced by an individual who lost his job due to an economic recession?
a.
Natural
b.
Structural
c.
Cyclical
d.
Frictional
Chapter 22 Solutions
Foundations of Economics (8th Edition)
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Similar questions
- Is the increase in labor force participation rates among women better thought of as causing an increase in cyclical unemployment or an increase in the natural rate of unemployment? Why?arrow_forwardBob cannot find a job because he does not have the required skills. A. seasonal B. frictional C. structural D. cyclical E. not countedarrow_forwardWhat type of unemployment might older workers be more prone to experience? Explain how the unemployment rate of older workers is influenced by the business cycle. Older workers are more prone to experience _______ unemployment. During a recession, the unemployment rate of older workers _______. A. structural; decreases B. natural; remains constant C. structural; increases D. frictional; decreasesarrow_forward
- Liberals think that unemployment is underestimated because of _____________________. Conservatives think that unemployment is overestimated because of ____________________. - 1. / 2. Underground Economy & People just saying they are looking for employment to get their check - 1. / 2. Discouraged Workers & Involuntary Part-timersarrow_forwardThis is a two-part question dealing with the unemployment rate. Explain how and why it might be possible for the unemployment rate to fall during the worst part of a recession. Secondly, explain how and why it might be possible for the unemployment rate to rise when the economy is in the early stages of recovery.arrow_forwardThe sum of frictional, seasonal, and structural unemployment is referred to as the _______________________________. This is the average level of unemployment that is expected to prevail in an economy and in the absence of cyclical unemployment. a. natural rate of unemployment b. “full employment" unemployment rate c. normal rate of unemployment d. none of the above is correct e. a, b, and c are all correctarrow_forward
- Why is the unemployment rate never zero, even at full employment? The unemployment rate is never zero, even at full employment, because _______. A. there are always new workers entering the labor market to search for work, workers leaving one job to search for another job, and workers who have been laid off and are searching for another job B. there are always people without jobs because of family responsibilities such as caring for children or elderly parents C. people make lifestyle choices such as early retirement, gap years, and movements from high-stress to low-stress jobs D. cyclical unemployment is always present in the economyarrow_forwardSelect the type of unemployment occurring in each of the causes below (and explain your answer): a) Workers in a high-end restaurant are laid off when the establishment experiences a decline in demand during a recession. A. cyclical B. frictional C. structural b) A new college graduate takes three months to find his first job. A. cyclical B. frictional C. structuralarrow_forwardA mild period of falling incomes and rising unemployment is called a: A mild period of falling incomes and rising unemployment is called a: A. business cycle B. boom C. recession D. depressionarrow_forward
- If inflation rises unexpectedly by 5%, indicate for each of the following whether the economic actor is helped, hurt, or unaffected: a. A union member with a COLA wage contract b. Someone with a large stash of cash in a safe deposit box c. A bank lending money at a fixed rate of interest d. A person who is not due tor receive a pay raise for another 11 monthsarrow_forwardGive typing answer with explanation and conclusion Which of the following is true? Select one: Cyclical unemployment is always small and not important Frictional unemployment is usually short term and structural unemployment is usually long term Seasonal unemployment is usually large and significant Cyclical unemployment is usually short term and seasonal unemployment is usually long termarrow_forward12. A person who has given up searching for work is called: a depressed worker a discouraged worker an underemployed worker cyclically unemployed frictionally unemployedarrow_forward
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