Name: __________________________ Date: _____________1.The macroeconomic problem that affects individuals most directly and severely is:A)inflation.B)unemployment.C)low savings.D)low investment.2.The unemployment rate in the United States since 1952 has:A)never been close to zero.B)gravitated toward a steady-state rate of zero.C)remained constant from year to year.D)equaled the natural rate of unemployment in every year.3.The natural rate of unemployment in the United States since 1950 has averaged between ______ and ______ percent.A)0; 1B)1; 3C)5; 6D)10; 154.The natural rate of unemployment is:A)the average rate of unemployment around which the economy fluctuates.B)about 10 percent of the labor force.C)a rate that never changes.D)the transition of individuals between employment and unemployment.5.If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment rate equals ______ percent (rounded to the nearest percent).A)0B)9C)10D)206.In a steady state:A)no hiring or firings are occurring.B)the number of people finding jobs equals the number of people losing jobs.C)the number of people finding jobs exceeds the number of people losing jobs.D)the number of people losing jobs exceeds the number of people finding jobs.7.In the model of the steady-state unemployment rate with a fixed labor force, the rate of job finding equals the percentage of the ______ who find a job each month, while the rate of job separation equals the percentage of the ______ who lose their job each month.A)labor force; labor forceB)labor force; unemployedC)employed; labor forceD)unemployed; employed8.A policy that increases the job-finding rate _____ the natural rate of unemployment.A)will increaseB)will decreaseC)will not changeD)could either increase or decrease9.A policy that decreases the job separation rate _____ the natural rate of unemployment.A)will increaseB)will decreaseC)will not changeD)could either increase or decrease10.If s is the rate of job separation, f is the rate of job finding, and both rates are constant, then the unemployment rate is approximately:A)f/(f + s).B)(f + s)/f.C)s/(s + f).D)(s + f)/s.11.If the fraction of employed workers who lose their jobs each month (the rate of job separations) is 0.01 and the fraction of the unemployed who find a job each month is 0.09 (the rate of job findings), then the natural rate of unemployment is:A)1 percent.B)9 percent.C)10 percent.D)about 11 percent.12.If the steady-state rate of unemployment equals 0.10 and the fraction of employed workers who lose their jobs each month (the rate of job separations) is 0.02, then the fraction of unemployed workers who find jobs each month (the rate of job findings) must be:A)0.02.B)0.08.C)0.10.D)0.18.13.If the steady-state rate of unemployment equals 0.125 and the fraction of unemployed workers who find jobs each month (the rate of job findings) is 0.56, then the fraction of employed workers who lose their jobs each month (the rate of job separations) must be:A)0.08.B)0.125.C)0.22.D)0.435.14.Any policy aimed at lowering the natural rate of unemployment must either ______ the rate of job separation or ______ the rate of job finding.A)reduce; reduceB)increase; increaseC)reduce; increaseD)increase; reduce15.One reason for unemployment is that:A)it takes time to match workers and jobs.B)all jobs are identical.C)the labor market is always in equilibrium.D)a laid-off worker can immediately find a new job at the market wage.16.All of the following are reasons for frictional unemployment except:A)workers have different preferences and abilities.B)unemployed workers accept the first job offer that they receive.C)the flow of information is imperfect.D)geographic mobility takes time.17.Frictional unemployment is unemployment caused by:A)wage rigidity.B)minimum-wage legislation.C)the time it takes workers to search for a job.D)clashes between the motives of insiders and outsiders.18.Unemployment caused by the time it takes workers to search for a job is called ______ unemployment.A)frictionalB)structuralC)efficiencyD)insider19.Which of the following is an example of frictional unemployment?A)Dave searches for a new job after voluntarily moving to San Diego.B)Elaine is willing to work for less than the minimum wage, but employers cannot hire her.C)Bill is qualified and would like to be an airline pilot, but airlines do not find it profitable to hire him at the wage established by the airline pilot's union.D)Joan is willing to work at the goin。