Problem Of Unemployment Flashcards
Job loss results in loss of ______-_______.
Self-worth
Producing at less than full production or under the production possibilities curve is critical for _______ resource.
Labor
What year was the Employment Act passed stating we must establish a full employment objective?
1946
In the US we calculate unemployment by starting with the population over ____ years old then determine how many of those people are working or trying to find work.
15
What is the participation rate in the US?
63%
Population x Participation Rate = ________ ________.
Labor Force
To be in the labor force a person must have a job or be “_________ _________” work and be over the age of 15.
Actively seeking
The people who were seeking a job but have given up are _____ included in the equation.
Not
To find unemployment we take the number of unemployed, divided by the total ________ _______.
Labor force
The lowest rate of unemployment we can enjoy without triggering inflation is the _________ ______ of ____________. (NRU)
Natural Rate of Unemployment
In recent history anything under ____% is considered full employment.
5
The highest rate of unemployment the US has seen is ___% during the depression and the lowest rate of unemployment was ____% during WWII.
25
1.2
What are the three types of unemployment?
Frictional
Cyclical
Structural
When people are unemployed because they are between jobs, entering or re-entering the work force they are considered what?
Frictionally unemployed
Which unemployment is the least severe of the three types of unemployment?
Frictional unemployment
Businesses laying off workers in the face of declining demand is considered what?
Cyclical unemployment
As economic activity decreases, cyclical unemployment _________. As economic activity increases, cyclical unemployment __________.
Increases
Decreases
Taking some pressure off price increases is a benefit of which unemployment?
Cyclical unemployment
Which unemployment benefits society because it reallocated resources to more productive uses?
Frictional unemployment
One way to control the severity of a recession is through the use of _______ _________.
Fiscal policy
The first tool for the government in fiscal policy to solve unemployment is increasing government spending on _______ goods.
Public
The second tool the government uses in fiscal policy to solve unemployment is ________ income taxes.
Reducing
The second way we control recessions is through what policy?
Monetary policy
Monetary policy is carried out by who?
Federal Reserve System
Monetary policy means the Federal Reserve System places more _______ back into the economy.
Money
What unemployment is caused by changes in the basic structure of the economy itself?
Structural unemployment
What happens when buying patterns or new technologies eliminate the need for certain jobs?
Structural unemployment
What is the most difficult psychologically of all unemployment types?
Structural unemployment
The number of people in an economic system who are working or looking for work is what?
Labor Force
The condition that exists when 96% of the labor force is employed is what?
Full employment
People who are between jobs and know what the next job will be are what?
Frictionally unemployed
People out of work because of a general drop in total production are what?
Cyclically unemployed
A change in buying patterns or technology in which a workers skills are no longer needed is considered what unemployment?
Structural unemployment
A loss of a persons power to have access to the economy through the ability to buy goods and services is considered what?
Economic disenfranchisement
The lowest level of unemployment the economy can sustain without triggering an increase in inflation is considered what?
Natural Rate of Unemployment (NRU)
Who relys on fiscal policy to help reduce the severity of a recession?
Keynesians
Who relys on monetary policy to control the amount of money in the economy?
Monetarists
In the _______ the US set up unemployment compensation and in the _______ is when we had social security programs.
1900’s
1930’s
What are the two types of people who have the highest unemployment regardless of the economic situation?
Males with a high school education or less
Racial minorities
Who calculates the unemployment rate?
The Bureau of Labor Statistics
