The Economic Report of the President (ERP), prepared annually by the President’s Council of Economic Advisers, is available in the library or online

(www.gpoaccess.gov/eop). ERP includes both useful articles on recent economic developments and a statistical section that provides historical data on many macro variables. LO5

a. From the ERP or some other source, find data for the nonrecession year 2006 on the percentage of the unemployed who were out of work less than 5 weeks, between 5 and 14 weeks, and over 26 weeks. What do these data suggest about the relative importance of frictional and structural unemployment in the economy when the economy is not in recession?

b. Compare the data you found for the most recent year to similar data for the recession years 1981–1982, 1990–1991, and 2001. How do recessions change the proportion of unemployment that is short term and long term?