Question 61(1 point)

Which of the following best defines the natural rate of unemployment?

Question 61 options:

a)

It is the unemployment rate that would prevail with zero inflation.

b)

It is the rate associated with the highest possible level of GDP.

c)

It is the difference between long-run and short-run unemployment rates.

d)

It is the amount of unemployment that the economy normally experiences.

Question 62(1 point)

Which of the following is characteristic of the natural rate of unemployment?

Question 62 options:

a)

It is a constant.

b)

It is the desirable rate of unemployment.

c)

It is a variable that cannot be altered by economic policy.

d)

It is the amount of unemployment that the economy normally experiences.

Question 63(1 point)

Which of the following best explains how unemployment relates to business cycles?

Question 63 options:

a)

Unemployment can be completely eliminated through economic policies when the economy grows at normal rates.

b)

Unemployment only exists during periods of economic slowdown.

c)

Cyclical unemployment is inversely related to short-run economic fluctuations.

d)

Unemployment is unrelated to short-run economic fluctuations.

Question 64(1 point)

How is the unemployment rate computed?

Question 64 options:

a)

as the number of unemployed divided by the labour force times 100

b)

as the number of unemployed divided by the number of people employed times 100

c)

as the number of unemployed divided by the adult population times 100

d)

as the number of unemployed times the participation rate times 100

Question 65(1 point)

Last year, a government reported an increase in the number of people who were employed and an increase in the unemployment rate. Which of the following would best explain the report?

Question 65 options:

a)

There was an increase in labour force.

b)

There was a decrease in labour force.

c)

There was an increase in adult population.

d)

There was a decrease in adult population.