Question :
61) The natural unemployment rate
A) includes only frictional and structural : 1228253
61) The natural unemployment rate
A) includes only frictional and structural unemployment.
B) is equal to zero when there are no economic fluctuations.
C) is easy to measure.
D) is very stable in value across time.
E) includes some frictional, structural, and cyclical unemployment.
62) The natural unemployment rate is
A) another name for the average annual rate of unemployment.
B) another name for the cyclical unemployment rate.
C) the sum of cyclical and frictional unemployment rates.
D) the unemployment rate that is not associated with the business cycle.
E) the sum of cyclical, structural, and frictional unemployment rates.
63) When cyclical unemployment is zero,
A) frictional unemployment is zero.
B) cyclical and frictional unemployment are zero.
C) structural unemployment is zero.
D) the unemployment rate equals the natural unemployment rate.
E) the natural unemployment rate is zero.
64) The natural unemployment rate occurs
A) at the full employment level of unemployment.
B) when the structural unemployment rate equals zero.
C) when the frictional unemployment rate equals zero.
D) when the sum of frictional and structural unemployment equals zero.
E) when the unemployment rate equals zero.
65) If the unemployment rate is less than the natural unemployment rate, then
A) there is no frictional unemployment.
B) cyclical unemployment is greater than zero.
C) real GDP is less than potential GDP.
D) real GDP is greater than potential GDP.
E) frictional unemployment is negative.
66) At the peak of a business cycle, the
A) cyclical unemployment rate is positive.
B) unemployment rate is above the natural unemployment rate.
C) frictional unemployment rate is zero.
D) unemployment rate is below the natural unemployment rate.
E) natural unemployment rate is negative.
67) The natural unemployment rate is
A) equal to the sum of frictional, cyclical, and seasonal unemployment.
B) not known with certainty.
C) equal to zero.
D) the same for all industrialized countries.
E) equal to the sum of frictional, structural, and cyclical unemployment.
68) Potential GDP is
A) the value of the maximum amount of output that can be produced at any given time.
B) the amount of real GDP that the economy would produce if it were at full employment of all resources.
C) another name for real GDP.
D) the amount of real GDP that the economy would produce if the unemployment rate was zero.
E) the amount of real GDP that the economy would produce if all unemployment was cyclical unemployment.
69) Potential GDP is the level of output produced when the unemployment rate is
A) equal to the natural unemployment rate.
B) greater than the natural unemployment rate.
C) less than the natural unemployment rate.
D) zero.
E) made up of only cyclical unemployment.
70) Potential GDP is reached when
A) unemployment is zero.
B) there is no cyclical unemployment.
C) unemployment is above full employment.
D) unemployment is below full employment.
E) the natural unemployment rate equals zero.
