19) John has been laid off fom his jpb because of a general ownhum in the econom
ID: 1122036 • Letter: 1
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19) John has been laid off fom his jpb because of a general ownhum in the economy, John's unemploymr best classified as A) cyclical B) seasonal C) structural. D) frictional. E) avoidable 20) Full employment means that A) 100 percent of the labor force have jobs B) only those who are willing. able and looking for work are unemployed. C) the cyclical unemployment rate is zero D) the natural unemployment rate is zero. E) the frictional unemployment rate is zero 21) The natural unemployment rate is the unemployment rate that exists when there is no A) structural unemployment B) frictional unemployment C) cyclical unemployment D) cyclical or structural unemployment E) seasonal unemployment. 22) The natural unemployment rate equals the sum of A) cyclical and frictional unemployment B) cyclical, seasonal, and structural unemployment C) frictional, seasonal, and structural unemployment. D) seasonal and cyclical unemployment E) cyclical, frictional, seasonal, and structural unemployment. 23) Economic growth is defined as A) a decrease in the rate of inflation. B) an increase in employment D) an increase in the wage rate. E) an increase in the nation's population. 24) Economic growth is defined as equal to the increase in A) employment B) population C) real GDP. D) the price level. E) the inflation rate. 2 rea $4t6 bilio l er and is $ 8 bilion his year, what is the growth rate? A) 11.1 percent B) -12.5 percent C) 12.5 percent D) $2 billion E)-11.1 percent 26) In growth theory, the standard of living is measured using the growth rate of A) population B) real GDP per person. C) real GDPExplanation / Answer
19. Cyclical unemployment occurs when workers loose their job due to downturn in the business cycle. So, John's unemployment is Cyclical unemployment.
Answer- option A
20. Full employment means all eligible people who wants to work can find employment at prevailing wage rate. It doesn't mean unemployment is completely zero because there is always some frictional and structural unemployment present. However full employment occurs when there is no cyclical or deficit demand unemployment and the full employment rate equals structural plus frictional rate. It is also called natural rate of unemployment.
Answer- option C.
21. Natural rate of unemployment includes frictional and structural unemployment and also natural rate of unemployment occurs when there is no cyclical unemployment.
Answer- option C
22. Natural rate of unemployment doesn't include cyclical unemployment. It equals frictional unemployment plus structural unemployment plus seasonal unemployment.
Answer- option C
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