Exam 6: Business Cycles and Unemployment

Juanita earned a B.S. in engineering and went to work for a large defense contractor in a small town in California. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes to be made into raisins, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is experiencing is:

One problem with the unemployment rate is that:

A business cycle is the:

Economic indicators, like unemployment claims and the average workweek, which change before real GDP changes, are called:

The business cycle consists of four phases. At the top we have:

Unemployment caused by a recession is called:

The phase of the business cycle that follows a recession is known as the:

Workers who may be between jobs are considered:

Exhibit 6-1 Business cycle In Exhibit 6-1, point E represents:

Cyclical unemployment is the result of the business cycle.

What does the GDP gap measure?

Stephen Moreno reported to the government interviewer that he worked 40 hours last week as a stocker at a Target department store. He is:

The increase in unemployment associated with a recession is called:

The primary cause of frictional unemployment is:

The economy's natural rate of unemployment consists of:

Which of the following is the correct formula for determining the civilian unemployment rate?

Unemployment that results from fundamental technological changes in production, or from the substitution of new goods for customary ones, is:

The unemployment rate is the percentage of the civilian labor force that is unemployed but actively seeking work.

A principal cause of the business cycle is the changes in total spending that occur in the overall economy.

Frictional unemployment refers to: