Exam 12: Business Cycles and Unemployment

In an economic expansion, people used their charge cards to purchase many goods. Now the economy is in a recession and people must use much of their reduced incomes to pay back debts. If employees manufacturing the goods people used to buy are laid off, they will suffer from:

Suppose u = those adults who are unemployed and seeking work; e = those adults who are employed; and NLF = those adults not in the labor force. Which expression would equal the BLS definition of the unemployment rate?

Unemployment caused by people voluntarily quitting work in order to seek more attractive employment is called:

Cyclical unemployment is the result of the business cycle.

Full employment occurs when the rate of unemployment consists of:

The phase in the business cycle in which real GDP declines is called a:

The government's chief forecasting gauge for business cycles is the:

Which of the following is true of the business cycle record of the United States?

A business cycle is the period of time in which:

Frictional unemployment refers to:

Structural unemployment is frequently caused by:

It is difficult for cyclically unemployed individuals to find jobs because:

The economic cost of unemployment is the loss of potential output which can never be realized.

Andrea Burris lost her job in a company layoff 5 months ago. She would take a job if one was offered, but she has given up looking for work until the economy improves. She is:

Economic growth is measured by the annual percentage increase in a nation's level of:

How do we measure economic growth?

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

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

The prime rate is a lagging indicator.

An example of cyclical unemployment is a(n):