No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Macroeconomic Performance (8 of 10)

Question 8:
Which of the following statements is true regarding the types of unemployment?

I. When people lose their jobs due to a recession, then cyclical unemployment exists.
II. When fresh college graduates look for jobs, they are structurally unemployed.
III. The natural rate of unemployment includes frictional and cyclical unemployment.
IV. People that are institutionalized and trying to find work are considered to be frictionally unemployed

A.  I
B.  II
C.  III
D.  IV
E.  None of the above

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Correct Answer: A, I. A recent college graduate is an example of frictional. The natural rate includes frictional and structural. People that are institutionalized are not part of the labor force.