Question: If the unemployment rate is 8 percent, then this means:

Answer: 8 percent of the labor force is unemployed.

Question: A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as:

Answer: cyclically unemployed.

Question: Each month the Census Bureau carries out the Current Population Survey (CPS) (which has been carried out every month since 1940). A total of __________ households are contacted every month.

Answer: 60,000

Question: A university student who is enrolled in school fulltime and not seeking employment is considered:

Answer: out of the labor force.

Question: Cyclical unemployment arises when:

Answer: business activity in the macroeconomy declines.

Question: If a nation’s labor force receives a significant influx of young workers:

Answer: the natural rate of unemployment is likely to increase.

Question: The U.S. unemployment rate moves up and down as the economy moves in and out of recessions. But over time, the unemployment rate seems to return to a range of ____________.

Answer: 4%-6%

Question: The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce:

Answer: frictional unemployment

Question: Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered:

Answer: out of the labor force

Question: Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the unemployment rate?

Answer: it would fall