Exam 20: Unemployment and Employment

Economists agree that the natural rate of unemployment increased during the 1970s. Which of the following has been attributed as a likely reason for this phenomenon?

All else being equal, suppose the nominal wage rate and the price level both fall by 10 percent. As a result,

Which of the following best describes a group of people who, according to the U.S. Current Population Survey, are more likely to work part-time?

Does unemployment affect different demographic groups equally? Explain.

A person who quits a job is no longer counted as part of the labor force.

Job losers are not considered to be part of the labor force or unemployed.

Explain why it is possible for job vacancies and unemployment to exist at the same time.

If the number of discouraged workers increases, the unemployment rate will decrease.

Economist Joseph Schumpeter called the process of new and better jobs replacing some existing jobs as

Answer the questions below:

A 21-year-old student looks for a job in the fall, and when she cannot find a suitable job after a few weeks, she gives up her search. This student is

The unemployment rates for young adults are higher in France, and Spain than in the United States. Why are these differences in unemployment rates likely to persist?

Which of the following statements is true?

The rate of female participation in the labor force has multiplied 10-fold since the 1950s.

According to the job-search explanation of unemployment,

On average, more than half of the unemployed workers stay unemployed for

The difference in the unemployment rates among young people in different countries is due to

A goal for any market economy is to eradicate very-short-term unemployment.

Long-term unemployment is not very sensitive to the business cycle.

The large increase in the percentage of women in the labor force is best described by