honeycfa

The natural rate of unemployment exists when:

A) the economy operates below full employment.

B) the economy operates at full employment.

C) structural unemployment is zero.

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The natural rate of unemployment exists when the economy operates at full employment. At full employment, cyclical unemployment is zero.

honeycfa

When individuals are unemployed because they do not have perfect information concerning available jobs, this is:

A) structural unemployment.

B) frictional unemployment.

C) natural unemployment.

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Frictional unemployment exists because workers and employers do not have perfect information and must expend time and resources on search activities.

honeycfa

Which of the following statements about unemployment is least accurate?

A) The economy is said to be operating at full employment only if there is no cyclical or frictional unemployment in the economy.

B) Frictional unemployment is unemployment due to changes in the economy that prevent qualified workers from being immediately matched with existing job openings.

C) The economy is said to be operating at full employment when cyclical unemployment is zero.

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The economy is said to be operating at full employment when cyclical unemployment is zero. Structural and/or frictional unemployment may still exist, but the economy may still be said to be at full employment.

honeycfa

Which type of unemployment describes a situation where workers who have been laid off due to economic changes and they are unable to find work due to a lack of education or the necessary skills to move into another available job?

A) Structural.

B) Frictional.

C) Cyclical.

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Structural unemployment is due to structural changes in the economy that eliminate some jobs while generating job openings for which unemployed workers are not qualified. Cyclical unemployment is when the economy is operating at less than full capacity.