Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Macroeconomics > Chapter 7 - Unemployment > Flashcards

Chapter 7 - Unemployment Flashcards

1
Q

After GDP, what is considered the second most important indicator of economic health?

A

The unemployment rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Does the unemployment rate include people who aren’t looking for a job?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What occurs when a worker who is not currently employed is searching for a job without success?

A

Unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What do we use to monitor the level of unemployment in an economy?

A

Unemployment rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the percentage of the labor force that is unemployed?

A

Unemployment rate (u)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the three types of unemployment?

A
  1. Structural
  2. Frictional
  3. Cyclical
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Why are structural unemployment and frictional unemployment called “natural unemployment?”

A

They occur when the economy is healthy and growing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Is it practical to have zero unemployment?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which unemployment is caused by changes in the industrial makeup of the economy?

A

Structural unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Who came up with the term “creative destruction?”

A

Joseph Schumpeter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the term used to describe the process of economic evolution?

A

Creative destruction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What occurs when the introduction of new products and technologies leads to the end of other industries and jobs?

A

Creative destruction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does the creative destruction process lead to?

A

Structural unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In a dynamic economy is job turnover normal?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How can structural unemployment be reduced?

A

Workers must often retrain, relocate, or change their expectations in some way

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is caused by delays in matching available jobs and workers?

A

Frictional unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What two types of unemployment cause natural unemployment?

A
  1. Structural

2. Frictional

18
Q

What are two causes of change in frictional unemployment?

A
  1. Information availability

2. Government policies

19
Q

What is a government program that reduces the hardship of joblessness by guaranteeing that unemployed workers receive a percentage of their former income while they are unemployed?

A

Unemployment insurance

20
Q

What is the RealGDP of the base year?

A

The NominalGDP

21
Q

What is cyclical unemployment caused by?

A

Recessions

22
Q

Which unemployment is caused by the ups and downs of the economy?

A

Cyclical unemployment

23
Q

What is the root cause of cyclical unemployment?

A

An unhealthy economy

24
Q

During a healthy economy is cyclical unemployment present?

A

No

25
Q

What is the typical rate of unemployment in an healthy economy?

A

Natural rate of unemployment (u*)

26
Q

What is the output level produced in an economy when there is no cyclical unemployment?

A

Full employment output (Y*)

27
Q

When cyclical unemployment is 0 does that mean our economy is healthy, we are having a recession, or we are having an expansion?

A

Our economy is healthy

28
Q

When cyclical unemployment is positive does that mean our economy is healthy, we are having a recession, or we are having an expansion?

A

We are having a recession

29
Q

When cyclical unemployment is negative does that mean our economy is healthy, we are having a recession, or we are having an expansion?

A

We are having an expansion

30
Q

In each of the following situations, is the unemployment that occurs a result of cyclical, frictional, or structural changes?

a. Workers in a high-end restaurant are laid off when the establishment experiences a decline in demand during a recession.
b. A group of automobile workers lose their jobs as a result of a permanent reduction in the demand for automobiles.
c. A new college graduate takes three months to find his first job.

A
  1. Cyclical
  2. Structural
  3. Frictional
31
Q

How do we measure the unemployment rate?

A

(# unemployed/ labor force) x 100

32
Q

How do we calculate to labor force?

A

You take the # of employed + the # of unemployed

33
Q

Is the military apart of the labor force?

A

No

34
Q

Who are people who want a job but get discouraged and give up looking for work?

A

Discouraged workers

35
Q

Are discouraged workers included in the labor force?

A

No

36
Q

Who are part-time workers who want a full-time job?

A

Underemployed workers

37
Q

How do we collect the unemployment data?

A

Through the household survey

38
Q

What is the portion of the population that is in the labor force called?

A

The labor force participation rate

39
Q

How do you find the labor force participation rate?

A

(Lab. for./pop.) x 100

40
Q

The following data is from Germany in 2010:
Working-age population = 70,856,000
Labor force = 41,189,000
Employed = 38,209,000
Question: Using the data, how would you compute the number of unemployed workers, the unemployment rate, and the labor force participation rate for Germany in 2010?

A
  1. 2,980,000
  2. 7.2
  3. 58.1%

Macroeconomics (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions