Question

Unemployment is a:

• leading indicator, because it follows the business cycle.

• lagging indicator, because the business cycle follows it.

• leading indicator, because the business cycle follows it.

• lagging indicator, because it follows the business cycle.

The labor demand curve:

• shows number of workers who are willing and able to work at higher wages.

• is provided by firms who want to hire workers at each given wage.

• shows that the number of people who want to work increases as the wage increases.

• is made up of workers who want to work for firms at each given wage.

The labor force participation rate:

• tells us what fraction of the working-age population wants to be working.

• is measured by those employed divided by the working-age population.

• is measured by the labor force divided by the total population.

• typically risesduring periods of recession.

Answer 1

Answer : 1) The answer is option D.

Unemployment is a "lagging indicator". Because unemployment level always change based on business cycle's various phases. This means that unemployment follow business cycle. Hence except option D other options are not correct. Therefore, option D is the correct answer.

2) The answer is option B.

Labor demand curve shows the relationship between wage rate and labor demanded. This means that the labor demand curve shows at given wage rate firms want to hire how many workers. Hence except option B other options are not correct. Therefore, option B is the correct answer.

3) The answer is option C.

The formula of labor force participation rate is :

Labor force participation rate = Labor force / Total population.

Hence except option C other options are not correct. Therefore, option C is the correct answer.