Chapter 8: Unemployment and Inflation
1. What does the unemployment rate measure? ___________________________________________________ ____________________________________________________________
2. What does the labor force participation rate measure? ___________________________________________ ____________________________________________________________
3. If the total population (age 16 and over) is 40 million, 1 million are unemployed, and 24 million currently hold jobs, how big is the labor force? _____________________________ what is the unemployment rate? _________________________ the labor force participation rate? _______________________________ 4. If the total population (age 16 and over) is 48 million; of this total, 4 million are unemployed and 36 million currently hold jobs. What is the rate of unemployment? __________________________ the labor force participation rate? __________________________ 5. How would the BLS classify each of the following people?
a) an administrator who has been working as a teacher one day per week while looking for a full-time job _______________________________ b) a mathematician who returned to graduate school after failing to find a job during the last four months _______________________________ c. c) a former steel worker who would like to work but has given up actively searching for employment d. _______________________________
d) a former auto worker who is currently looking for work in the computer industry _______________________________ 6. What is the natural rate of unemployment? ___________________________________________________ ____________________________________________________________
7. What is cyclical unemployment?...