The duration of unemployment depends on
A. how organized the labor market is in matching potential workers with jobs
B. the age, sex, and racial mix of the labor force
C. the ability and desire of those who are unemployed to hold out for a better job
D. the availability of jobs that match workers' skills
E. all of the above
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Which of the following statements is FALSE?
A. there is a high turnover rate in the labor market
B. a significant amount of the turnover rate in the labor market is cyclical
C. there are large variations in unemployment rates across groups defined by age, race, and sex
D. over 50 percent of the workers who became unemployed in 2009 remained unemployed for more than half a year
E. many workers who are counted as unemployed will be (or have been) unemployed for several weeks
If we look at U.S. unemployment by duration we can see that in 2009
A. more than half of the unemployed stayed unemployed for more than half a year
B. less than 20 percent of the unemployed were unemployed for more than half a year
C. the mean duration of unemployment was less than 12 weeks
D. the mean duration of unemployment was more than 24 weeks
E. none of the above
Which of the following does NOT affect the duration of unemployment?
A. the availability of unemployment benefits
B. the rate at which new workers enter the work force
C. the demographic make-up of the labor force
D. the organization of the labor market
E. none of the above
Unemployment hysteresis refers to the fact that
A. high rates of unemployment tend to perpetuate themselves
B. when unemployed, individuals reduce their consumption, causing firms to lay off more workers and therefore cyclical unemployment increases even more
C. individuals who experience long spells of unemployment often get desperate and take jobs for which they are overqualified
D. politicians often react irrationally to news of high unemployment and stimulate the economy causing unnecessary political cycles
E. none of the above
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