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Reading 22: Monitoring Jobs and the Price Level - LOS c ~

Q11. The natural rate of unemployment is the sum of:

A)   structural and cyclical unemployment.

B)   frictional and structural unemployment.

C)   frictional and cyclical unemployment.

Q12. When real GDP falls below potential GDP:

A)   structural unemployment increases.

B)   cyclical unemployment increases.

C)   cyclical unemployment decreases.

Q13. Full employment is said to occur when:

A)   the natural rate of unemployment equals zero.

B)   structural and frictional unemployment approach zero.

C)   cyclical unemployment equals zero.

Q14. Which of the following is zero when an economy is at full employment?

A)   Frictional unemployment.

B)   Structural unemployment.

C)   Cyclical unemployment.

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