Cards (46)

    • What condition defines unemployment?
      Actively seeking employment
    • Structural unemployment arises from changes in the economy that make some skills obsolete.

      True
    • Seasonal unemployment varies due to seasonal changes in employment demand
    • Frictional unemployment occurs when individuals are between jobs
    • Which type of unemployment results from fluctuations in the business cycle?
      Cyclical unemployment
    • What is an example of frictional unemployment?
      A recent college graduate
    • Frictional unemployment occurs when individuals are actively seeking better employment opportunities
    • Why does cyclical unemployment occur?
      Fluctuations in the business cycle
    • What is the most commonly reported measure of unemployment?
      U-3
    • Match the unemployment measure with its definition:
      U-3 ↔️ The official unemployment rate
      U-4 ↔️ U-3 plus discouraged workers
      U-6 ↔️ U-5 plus part-time workers who want full-time employment
    • What does the employment population ratio measure?
      Percentage of the population employed
    • What is the formula for calculating the overall unemployment rate?
      Number of UnemployedLabor Force×100\frac{\text{Number of Unemployed}}{\text{Labor Force}} \times 100
    • Structural unemployment arises from mismatches between worker skills and available jobs
    • What type of unemployment varies based on seasonal changes in employment demand?
      Seasonal
    • There are four main types of unemployment, each with distinct causes and characteristics
    • What is an example of structural unemployment?
      Auto workers displaced by automation
    • What does the U-3 unemployment measure represent?
      The official unemployment rate
    • What does the U-6 measure add to the U-5 measure?
      Part-time workers seeking full-time employment
    • What does the unemployment rate (U-3) measure?
      Unemployed and actively seeking
    • What does the U-2 measure of unemployment focus on?
      Lost jobs or temporary work
    • Arrange the unemployment measures in order from the smallest to the largest group they represent.
      1️⃣ U-1
      2️⃣ U-2
      3️⃣ U-3
      4️⃣ U-4
      5️⃣ U-5
      6️⃣ U-6
    • Match the unemployment measure with its definition:
      U-1 ↔️ Unemployed 15 weeks or longer
      U-2 ↔️ Lost jobs or temporary work
      U-3 ↔️ The official unemployment rate
      U-4 ↔️ U-3 plus discouraged workers
      U-5 ↔️ U-4 plus other marginally attached workers
      U-6 ↔️ U-5 plus part-time workers seeking full-time employment
    • What are the four main types of unemployment?
      Frictional, structural, cyclical, seasonal
    • Unemployment reduces consumer confidence and spending.

      True
    • What are three policies to combat unemployment?
      Fiscal stimulus, monetary policy, education and training
    • The long-run Phillips Curve is a vertical line at the natural rate of unemployment.
    • Match the type of unemployment with its example:
      Structural ↔️ Auto workers displaced by automation
      Cyclical ↔️ Retail workers laid off during a recession
      Seasonal ↔️ Ski instructors out of work in summer
    • What is an example of structural unemployment?
      Auto workers displaced by automation
    • Seasonal unemployment affects industries like tourism and agriculture.

      True
    • U-1 measures the percentage of the labor force unemployed for 15 weeks or longer
    • The labor force participation rate measures the percentage of the population in the labor force.

      True
    • The labor force participation rate measures the percentage of the population in the labor force
    • The employment population ratio measures the percentage of the population that is employed.
      True
    • What type of unemployment occurs when individuals are between jobs or seeking better opportunities?
      Frictional
    • Cyclical unemployment is caused by fluctuations in the business cycle, such as recessions.

      True
    • Match the unemployment category with its description:
      Employed ↔️ Individuals currently working for pay or profit
      Unemployed ↔️ Actively seeking work but unable to find a job
      Not in Labor Force ↔️ Not actively seeking work
    • Frictional unemployment occurs when workers are displaced by automation and their skills no longer match available jobs.
      False
    • Order the alternative measures of unemployment from narrowest to broadest scope:
      1️⃣ U-1
      2️⃣ U-2
      3️⃣ U-3
      4️⃣ U-4
      5️⃣ U-5
      6️⃣ U-6
    • The U-4 measure includes discouraged workers in addition to the U-3 unemployment rate.

      True
    • The U-5 measure includes other marginally attached workers who are available but not actively seeking
    See similar decks