2. Normally when the pace of job creation exceeds the increase inpopulation, the unemployment rate _______.

A.

falls

B.

falls to zero

C.

remains unchanged

D.

rises

3. When the pace of job creation exceeds the increase inpopulation, the unemployment rate sometimes increases because_______.

A. discouraged workers return to the labor force

B.

the real wage rate falls

C.

discouraged workers leave the labor force

D.

cyclical unemployment increases

4.We would expect the labor force participation rate to_______ in response to job creation in excess of population growth.

A.

increase to over 90 percent

B.

increase

C.

not change

D.

decrease

5. We would expect an increase in the growth rate of real GDP to_______ jobs and_______ unemployment.

A.

decrease; increase

B.

increase; decrease

C.

increase; increase

D.

decrease; decrease