Chapter 29 matching PDF

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this is practice material for macro economics...

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Chapter 29--Some sample multiple choice questions (from an old exam) 6. Suppose that homemakers (housewives) are included as employed in the labor force statistics, rather than being counted as out of the labor force. This would A) increase the measured unemployment rate. B) increase the measured labor force participation rate. C) decrease the number of persons in the labor force. D) decrease the number of persons in the working-age population. 7. The labor force equals the number of people A) employed. B) unemployed. C) employed plus unemployed. D) in the working-age population. 8. Discouraged workers are A) workers who have a part time job but want a full-time job. B) workers who find their current jobs unfulfilling and are considering a job change. C) workers who have consistently been looking for work for more than 4 weeks. D) workers who have stopped looking for work because they believe there are no jobs for them. 9. Cyclical unemployment is the result of A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. B) the search process of matching workers with jobs. C) increases or decreases in inflation. D) a slowdown in the economy. 10. In 2015, JP Morgan Chase announced that it was laying off 5,000 employees. The laid-off employees who were not able to find jobs at another bank due to a permanent decline in demand in the banking industry would be considered A) structurally unemployed. B) frictionally unemployed. C) seasonally unemployed. D) cyclically unemployed.

Matching Chapter 29 (Match the letter definition to the 11 terms)

1. Labor force 2. Labor force participation rate 3. Unemployment rate 4. Discouraged workers 5. Frictional unemployment 6. Structural unemployment 7. Discouraged worker effect 8. Natural rate of unemployment 9. Cyclical unemployment 10. Monetary policy 11. Fiscal policy

Definitions a. b. c. d. e. f. g. h. i. j. k.

Use of tax policy and government spending policy to affect aggregate output, unemployment and inflation Actions by a country’s Central Bank to influence interest rates and the money supply with the goal of achieving high employment and/price stability and low inflation The number of people without jobs divided by the number of people who are either working or looking for jobs The sum of all people available to work, including employed and unemployed The portion of the unemployment rate resulting from normal turnover as people search for a different job The portion of the unemployment due to big changes in the economy, for example as one industry rises and another industry declines substantially The number of people in the labor force as a percentage of the adult population of the country The unemployment rate that is the sum of frictional and structural unemployment and is some sort of minimum rate that government action cannot reduce, except perhaps temporarily Workers who have quit looking for a job because they have been unsuccessful in their job search for so long The amount that the unemployment rate may be understated because it does not account for workers who have quit looking for work Unemployment above structural and frictional due to the business cycle in a country...