Question

Select the correct answer:

The (working-age population; labor force) is the total number of people aged 16 years and over and who are not in jail, hospital, or some other form of institutional care.

The (unemployment rate; labor force participation rate) is the percentage of the working-age population who are members of the labor force.

Pat is neither working nor actively looking for work, so she is (unemployed; discouraged worker)

Shirley is working less than 35 hours a week, and is looking for a full-time job, so she is (part-time worker for economic reasons, part time worker for noneconomic reasons).

Since 1960, the male (labor force participation rate; unemployment rate) decreased and the one for females increased.

The normal unemployment from labor market turnover is called (cyclical, frictional) unemployment.

When (structural; cyclical) unemployment equals zero, the economy is experiencing full employment.

When (potential GDP; structural unemployment) exceeds real GDP, the output gap is negative and the unemployment rate is higher than the natural unemployment rate.

Answer 1

The working-age population is the total number of people in the working age in an economy.

The labor force participation rate represents the proportion of number of people in the working age population who are member of labor force. That is who are either employed or looking for work.

Discouraged workers are those who are neither working nor looking for work.

Part time worker for economic reasons as she wants full time employment but does not have it.

Labor force participation rate- decreased for men and increased for women since 1960s.

Cyclical unemployment - It is equal to unemployment rate minus natural rate of unemployment, So, when cyclical unemployment is zero, it means unemployment rate equals natural rate of unemployment. Thus, economy is experiencing full employment.

Potential GDP - As potential GDP exceeds real GDP, output gap is negative because real GDP falls short of potential GDP and unemployment rate is higher than natural unemployment rate.