Exhibit 16-2 Unemployment categories
Category# ofIndividuals
Frictional unemployment 20
Structural unemployment 35
Cyclical unemployment 60
Discouraged workers 5
Underemployed workers 10
Fully employed workers410
Population900
Using the information in Exhibit 16-2, the natural rate of unemployment is
A. 2.8 percent.
B. 10.3 percent.
C. 11 percent.
D. 21.5 percent.
Answer: C
You might also like to view...
Expansionary monetary policy is designed to stimulate the economy by increasing the money supply, but not create much inflationary pressure
Indicate whether the statement is true or false
The cross-trade of very similar products exported and imported by trading partners seems to contradict which of the following model(s)?
a. Ricardian b. Heckscher-Ohlin c. specific-factors d. It contradicts all of these models.
The civilian labor force consists of:
A. all civilians over the age of 16. B. the employed plus the unemployed who are not in the military. C. only individuals who are actually at work during a given week. D. civilians who are not in prisons or mental hospitals.
Suppose that the buyers of bread higher incomes and bread is an inferior good. In the market for bread, this will cause the ________ and the equilibrium price to ________.
A. supply of bread to decrease; increase B. supply of bread to increase; decrease C. demand for bread to decrease; decrease D. demand for bread to increase; increase