Chapter 15: Answer all the following multiple choice questions please.

Question 1 {1 point} Consider Canada's employment insurance {Ell program. which provides benefits to eligible unemployed workers. If the program is designed such that benefits are more generous in regions with higher rates of unemployment, then we can expect that 0 Al labour markets will adapt to changes more quickly as a result. O E} structural unemployment will increase and the NAIRU will be higher than otherwise. 0 G the NAIRU will decrease. O D} cyclical unemployment will increase. 0 E} frictional unemployment will decrease because workers have more time to find a well-suited job. Question 2 (1 point) The table below shows real GDP, potential GDP and the unemployment rate for a hypothetical economy. Real GDP (billions of Potential GDP | Unemployment Year $) (billions of $) Rate 2010 424 425 6.2 2011 429 429 6.1 2012 435 433 5.8 2013 435 436 6.2 2014 438 440 5.4 2015 442 442 5.1 2016 440 446 7.0 2017 449 450 6.2 2018 457 453 5.9 TABLE 30-3 Refer to Table 30-3. What is the NAIRU in this economy? O A) 7.0% B) 5.9% O C) 6.1% O D) 6.4% O E) 6.2%Question 3 (1 point) Unemployment rates among workers in the 15-24 age group tend to be the overall unemployment rate. An influx of workers of this age group into the labour force would tend to the NAIRU. O A) the same as; not change B) higher than; decrease O C) lower than; decrease O D) lower than; increase O E) higher than; increase Question 4 (1 point) If the actual unemployment rate is equal to the NAIRU, then O A) actual GDP will be higher than potential GDP. O B) actual and potential GDP are equal. O C) actual GDP will be below potential GDP. O D) potential GDP will expand permanently. E) the unemployment rate is 0%.Question 5 (1 point) Other things being equal, a macroeconomic shock that leads to an inflationary output gap results in O A) a decrease in cyclical unemployment. O B) an increase in NAIRU. O C) a decrease in NAIRU. O D) a decrease in frictional unemployment. O E) a decrease in structural unemployment. Question 6 (1 point) If, as market-clearing theories of the labour market suggest, all labour markets had perfectly flexible wages, real wages would rise when labour demand O A) rises and fall when labour supply rises. O B) falls and rise when labour supply falls. O C) rises and fall when labour supply falls. O D) rises and rise when labour supply rises. O E) falls and falls when labour supply rises.Question 7 (1 point) It is generally accepted that during a recession the official labour market data reported by Statistics Canada understates the "true" extent of unemployment for the following reasons: 1) Workers who leave the labour force and return to school are counted as full-time workers; 2) Some workers become discouraged and leave the labour force; 3) Some workers are underemployed. O A) 1 only O B) 2 only O C) 3 only O D) 1 and 2 O E) 2 and 3Question 8 (1 point) Market-clearing theories of the labour market suggest that fluctuations in employment and wages can be caused by the supply side of the market through changes in the O A) level of net exports in the economy. B) willingness of firms to hire workers. O C) price level. O D) willingness of workers to supply their labour. E) marginal efficiency of investment. Question 9 (1 point) One motivation for having publicly subsidized retraining programs for workers is to O A) reduce cyclical unemployment. B) encourage the use of efficiency wages. O C) resist adjustment to technological change. O D) encourage employment in low-paying jobs. O E) reduce structural unemployment.Question 10 (1 point) Non-market-clearing theories of unemployment emphasize wage stickiness. Wage stickiness provides an important explanation for the existence of , which fluctuates inversely with real GDP. O A) cyclical unemployment B) efficiency wages O C) frictional unemployment O D) voluntary unemployment O E) minimum wages Question 11 (1 point) the When real GDP is greater than potential output, the unemployment rate NAIRU. O A) is equal to O B) rises toward but never exceeds O C) falls toward O D) falls below O E) rises aboveQuestion 12 (1 point) The concept of "full employment" refers to a situation in which there exists O A) no job vacancies at the time. O B) only involuntary unemployment. O C) an unemployment rate of less than 5%. O D) only structural and/or frictional unemployment. OE) a measured unemployment rate of zero