Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A. Both the labor force and the population increased.
B. Winter storms cause factories in the north to be shut down for several weeks.
C. Unusually good weather causes the wheat crop to be larger than normal.
D. Government spending increased causing aggregate demand to increase.
Answer: D
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A worker is considered part time if the worker
A) is a full-time student without a job. B) is not employed but is actively looking for work. C) is not employed and is not actively looking for work. D) usually works less than 40 hours per week. E) usually works less than 35 hours per week.
If the federal government implements programs to more quickly match the unemployed with jobs, then the natural rate of unemployment
A) will increase. B) will decrease. C) will not change. D) will disappear.