Exam 6: Business Cycles and Unemployment

When an economy is operating at its full employment rate of output:

Suppose the official unemployment rate is 10 percent. We can conclude without question that:

Which of the following statements would come from someone classified as unemployed?

The GDP gap is the difference between:

What stage of the business cycle immediately follows the trough?

As a general rule, a recession occurs when there is a six consecutive month fall in:

If a sizable number of workers were switched from full-time to half-time employment, then the official unemployment rate would:

Full employment, which is always expected to occur, consists of the frictionally and cyclically unemployed.

Cyclical unemployment is caused by:

Which of the following will most likely occur during the recessionary phase of a business cycle?

The civilian labor force excludes anyone not actively seeking a job.

Exhibit 6-1 Business cycle In Exhibit 6-1, the recession phase of the business cycle can be represented by point(s):

Industrial production is not a coincident indicator.

Whom does the Bureau of Labor Statistics include in the "discouraged workers" group?

Why might the official measure of civilian unemployment in the U.S. be an understatement of actual unemployment?

People who are not currently employed, but say they want a job, are counted as unemployed only if they:

If real GDP declines for at least one-half year, the economy is experiencing a:

Which of the following is true ?

As a general rule, a recession is a decline in real GDP lasting at least :

The civilian labor force includes only the employed.