Exam 2 Flashcards
Brian got fired from teaching at KU about 10 months ago and he looked for work for a few days but gave looking completely because he believes there are no jobs to be found. In a normal calculation of U3, as measured by the BLS, Brian would be…
A. Included in the denominator only
B. Included in the numerator only
C. Included in both the numerator and denominator
D. Not included in either the numerator or denominator
D
Brian got fired from teaching at KU about 10 months ago and he looked for work for a few days but gave looking completely because he believes there are no jobs to be found. In a normal calculation of U6, as measured by the BLS, Brian would be…
A. Included in the denominator only
B. Included in the numerator only
C. Included in both the numerator and denominator
D. Not included in either the numerator or denominator
c
In the country of Brianlandia there are 20 million people currently working. There are 4 million people who are not working but have looked for a job in the past 4 weeks. There are 12 million people who are 16 years or older, are not working, have not looked in the past four weeks, are not in the hospital or prison, and are not in the military. These 3 numbers represent all the people in Brianlandia. If Brianlandia calculated the labor force participation rate exactly as the BLS does what is the labor force participation rate in Brianlandia.
A. Approximately 52%
B. Approximately 63%
C. Approximately 57%
D. Approximately 66%
D
Brian quit his job as a college professor back in October. For the first month he looked for a job, but since November he has not even bothered to look for a job. The BLS would consider Brian to be …
A. part of the labor force
B. unemployed
C. marginally attached
D. both A and B but not C
c
Based on current numbers discussed in class, which is larger (as of February 2017)?
A. The number of people in the US considered marginally attached to the work force
B. The number of people in the US considered unemployed
C. The number of people in the US working part time for economic reasons
D. The number of people in the US considered to be discouraged workers
b
Richard S. has lost his job as an accountant at the shirt factory, but not because there was no demand for shirts. Rather, the factory required that Richard keep the books by spreadsheet and he only can keep books in a ledger using a pencil. Richard's unemployment would be considered ... A. Cyclical B. Structural C. Frictional D. Seasonal
b
Current unemployment rate
4.8%
Targeted rate of unemployment (Natural rate of unemployment) (full employment)
5%
4 Different Types of Unemployment
Seasonal
Structural
Cyclical
Frictional
Seasonal
Certain professions demand for labor is seasonal
–Example: Agricultural and construction
Frictional
At any point in time in a fluid labor market some people are looking for jobs and some firms are looking for people
Structural
The mismatch between workers and the skills/requirements of the job
- -As economy changes we produce different goods and services
- -People who were employed in the now-outdated industries lose their jobs
Cyclical
Caused by recession
- -Too few jobs available
- -Insufficient demand for goods and services creates insufficient demand for labor
Who calculates unemployment?
BLS (bureau of labor statistics)
Not in the labor force
- People under 16
- People in hospitals or prison
- US military
- -Retired, housewife, doing odd jobs for cash, not looking
How many people not in the labor force?
94 million
How many people employed?
152.1 million
How many people unemployed?
7.6 million
How many marginally attached workers?
1.75 million
Discouraged workers
- A subcategory of marginally attached
- Gave up looking because they believe there are no jobs
How many people are working part time for economic reasons? Are they considered to be employed, unemployed, or marginally attached?
5.8 million; employed
5 Differences between GDP deflator and CPI
- CPI is done by BLS not BEA
- CPI is released every month, not quarterly
- Quantities don’t matter in CPI, just take one of each thing
- Current base year for CPI is 1983
- CPI measures consumer goods only (GDP measures a bunch of other stuff)
Calculate U3
(Unemployed) / (Labor Force)
Calculate U6
(Unemployed + Marginally Attached + Part Time) / (Labor Force + Marginally Attached)