IB Unemployment

Cyclical unemployment

• Describes recent college graduates

• Lasts longer than 6 months

• Describes employees moving from one job to another

• Increases inflation Increases inflation

Seasonal unemployment

• Describes recent college graduates

• Is predictable

• Is a result of changes in technology

• Slows the economy Slows the economy

In which type of unemployment workers find it hard to obtain new jobs without retraining, gaining additional education, or relocating??

• cyclical

• frictional

• structural

• all of them

The unemployment rate is the ratio of

• unemployed (not seeking employment) to labor force

• employed seeking employment to labor force

• unemployed (and seeking employment) to labor force

• dissatisfied to labor force

The unemployment rate will drop if

• A person is hired into a new job

• Someone who was previously laid off is rehired

• An unemployed person stops looking

• Better technology

Unemployment which exists in any economy due to people being in the process of moving from one job to another

• frictional

• cyclical

• functional

• structural

If operators are fired and replaced with computer technology, the operators would be considered

• frictionally unemployed

• structurally unemployed

• cyclically unemployed

• dissatisfiededly unemployed dissatisfiededly unemployed

Which is not the type of unemployment?

• frictional

• functional

• cyclical

• structural

Discouraged workers in

the economy implies that the measurement of unemployment...

• understates the true unemployment rate

• overstates the true unemployment rate

• correctly measures the true unemployment rate

• doubles the unemployment rate

Which of the following statements is true of an economy at its "natural

rate of unemployment"?

• Everyone who wants to work is working

• The economy is producing at its potential

• The economy is only experiencing cyclical unemployment

• The economy is producing beyond the PPF The economy is producing beyond the PPF