7

Question 1

the total number of adults (aged 16
years or older) willing and able to work and who are
actively looking for work but have not found a job.

Answer 1

unemploymemt

Question 2

the individuals aged 16 years or
older who either have jobs or who are looking and
available for jobs; the number of employed plus the
number of unemployed.

Answer 2

labor force

Question 3

24.7% highest US unemployment rate

Answer 3

great depression

Question 4

current unemployment

Answer 4

3.9%

Question 5

Individuals who have stopped looking for a job because
they are convinced they will not find a suitable one

Answer 5

discouraged workers

Question 6

formula for calculating unemployment rate

Answer 6

unemployment/labor force x 100

Question 7

4 categories of unemployment

Answer 7

– Job loser
– Reentrant
– Job leaver
– New entrant

Question 8

biggest category of unemployment
individual involuntary terminated or who was laid off:
40 to 60 percent of the unemployed

Answer 8

job loser

Question 9

An individual who has worked a full-time job before but left the labor force and has now reentered it looking for a job:
- 20 to 30 percent of the unemployed
17 weeks

Answer 9

Reentrant

Question 10

– An individual who voluntarily quits:
-10 to 15 percent of the unemployed

Answer 10

Job leaver

Question 11

– An individual who has never worked a full-time job for two weeks or longer:
-10 to 15 percent of the unemployed

Answer 11

New entrant

Question 12

Major types of unemployment:

Answer 12

• Frictional
  – Structural
  – Cyclical

Question 13

– Frictional unemployment results from the fact that
workers must search for appropriate job offers.
– This takes time, so they remain temporarily
unemployed.

Answer 13

Frictional unemployment

Question 14

– This type of unemployment over lengthy intervals results from skill mismatches with position requirements of employers and from fewer jobs being offered by employers constrained by governmental business regulations and labor market policies.
– Considerable evidence shows that government labor market policies influence how many jobs businesses wish to create, thereby affecting structural unemployment.

Answer 14

Structural unemployment

Question 15

– This type of unemployment results from business
recessions that occur when aggregate (total) demand
is insufficient to create full employment.

Answer 15

cyclical unemployment

Question 16

A sustained increase in the average of all prices of goods and services in an economy
target 2%

Answer 16

Inflation

Question 17

A sustained decrease in the average of all prices of goods and services in an economy

Answer 17

Deflation

Question 18

price index formula

Answer 18

cost market today/cost market baseyear x 100

Question 19

Real-world price indexes:

Answer 19

-Consumer Price Index (CPI)
– Producer Price Index (PPI)
– GDP deflator
– Personal Consumption Expenditure (PCE) Index

Question 20

Clauses in contracts that allow for increases in specified
nominal values to account for changes in the cost of living

Answer 20

COLA

Question 21

Inflation at a rate that comes as a surprise
- Creditors lose.
– Debtors gain.

Answer 21

unanticipated inflation

Question 22

The ups and downs in business activity throughout the economy

Answer 22

Business fluctuations