Generous unemployment benefits may actually lead to an increase in the measured rate of unemployment since
A. people who are not really looking for jobs may report themselves as unemployed to collect unemployment benefits
B. receiving unemployment benefits reduces the opportunity costs of looking for a better job even after a job offer may have been made
C. firms are more likely to lay off workers knowing that the consequences of being unemployed are not too severe
D. unemployment benefits increase the replacement ratio and that, in turn, affects the reservation wage
E. all of the above
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When we look at unemployment in the United States, which of the following statements is most accurate?
A. flows into and out of the unemployment pool tend to be fairly small relative to the actual number of unemployed
B. variations in the unemployment rates are fairly small across groups defined by age, gender, or race
C. the average duration of unemployment for the majority of unemployed tends to be more than half a year long
D. the average duration of unemployment was higher in the period of between 1975 and 1985 than it was between 1995 and 2005
E. the unemployment rates during the recessions of 1981/82 and 2001/02 were lower than the rate during the Great Recession of 2007-09
In a "jobless recovery,"
A. no new jobs are created during a recession or in the early stages of recovery
B. firms do not hire new workers until they see the economy has recovered from the recession
C. unemployment must go back to its natural rate before the upswing can start
D. there is a lag between GDP growth and a drop in unemployment
E. none of the above
The natural rate of unemployment will most likely increase if
A. the minimum wage rate is decreased
B. unemployment benefits are increased
C. monetary growth is decreased
D. income taxes are increased
E. all of the above
In 2009, the mean duration of unemployment was about
A. 11.4 weeks
B. 12.6 weeks
C. 19.5 weeks
D. 22.4 weeks
E. 31.5 weeks
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