Exam 6: Business Cycles and Unemployment

Cyclical unemployment is primarily caused by:

Eric lost his job because a recession caused his employer's sales to fall. This is an example of:

Martin Shore lost his job when General Motors closed down its local plant. He has been visiting the personnel offices of the other factories in the area, looking for a new job. He is:

Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is:

The prime rate is a lagging indicator.

When macroeconomics refers to "full employment," what do they mean?

The number of people officially unemployed is not the same as the number of people who can't find a job because:

A person who has given up searching for work is called:

Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the civilian labor force is:

To be counted as unemployed, a person must be looking for a job.

The point at which real output reaches a maximum during a business cycle is called the:

The civilian labor force consists of all the:

Which of the following is not a coincident indicator?

The presence of discouraged workers may cause:

The period of declining growth in real GDP between the peak of the business cycle and the trough is called a(n):

Actual GDP will be below potential GDP:

The ____ phase of the business cycle follows a recession.

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal)rate of unemployment?

Exhibit 6-2 Unemployment categories Consider an economy made up of 100 people, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The unemployment rate is approximately:

Of the four groups listed below, the highest unemployment rate is typically experienced by: