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
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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
Which of the following can affect the frequency of unemployment?
A. the availability of unemployment benefits
B. the variability of the demand for labor across different employers
C. the rate at which new workers enter the labor force
D. both A) and B)
E. both B) and C)
Over the last five decades, the natural rate of unemployment has
A. always been around 4%
B. declined from about 5.5% in the 1950s to about 4% in 2009
C. changed as the composition of the labor force has changed
D. consistently declined as more women entered the labor force
E. increased from 3% in the 1950s to 8% in the 1980s, but decreased ever since
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