Introducing
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
Section 5 Lecture 8
1,192
Lecture 8
Q1
Steve was laid off from his manufacturing job after the demand for the firm's product experienced a permanent decrease. What type of unemployment is this?
Types of Unemployment
Try Again!
Cyclical unemployment is the result of a temporary decrease in the demand for a good or service. Cyclical unemployment is due to the recessionary phase of the business cycle.
Cyclical
Try Again!
Fictional unemployment has to do with timing and search unemployment, not changes in demand.
Frictional
Correct!
Structural
Structural unemployment is a result of a permanent decrease in the demand for a good or a permanent change in the structure of the economy that reduces the demand for a specific job.
Q2
Which of the following is an example of frictional unemployment?
Types of Unemployment
Try Again!
Unemployment caused by the recessionary phase of the business cycle is cyclical unemployment.
Juan lost his job after a downturn in the economy reduced the demand for taxi drivers.
Try Again!
Sara's position was replaced by technology that likely reduced the demand for her position permanently. This is structural unemployment.
Sara's position at her firm was eliminated after a new technology allowed for fewer workers to produce the same amount.
Correct!
Samantha quit her job at a fast food restaurant and is hoping to find work in retail.
Even if a worker voluntarily leaves a position they are considered unemployed if they do not have work. Samantha is searching for a job that is a better match, this is an example of fictionally unemployed.
Q3
True or False: All unemployment is bad for society and reduces the likelihood of economic growth.
Types of Unemployment
Try Again!
True
In the Production Possibility Model and our discussion of economic growth we refer to the economy has having full employment. Full employment does not mean 0 unemployment, only 0 cyclical unemployment. Frictional and Structural Unemployment are not necessarily bad for an economy.
Correct!
False
In the Production Possibility Model and our discussion of economic growth we refer to the economy has having full employment. Full employment does not mean 0 unemployment, only 0 cyclical unemployment. Frictional and Structural Unemployment are not necessarily bad for an economy.
Q4
Use the table below to calculate the unemployment rate and the natural rate of unemployment.
Calculation
Click Here For The Answer
The actual unemployment rate is:
Cyclical + Frictional + Structural
2.1 + 3.4 + 3.0 = 8.5%
The natural unemployment rate is:
Frictional + Structural
3.4 + 3.0 = 6.4%
**Discouraged workers are not included in the unemployment rate.