1] When the unemployment rate is_____ than the natural unemployment rate, real GDP _______.
A) less; exceeds potential GDP
B) Greater; is increasing
C) less, is decreasing
D) great; Exceeds potential GDP
2] The U.S. Unemployment rate _____.
A) is calculated as the percentage of the labor force who are unemployed or who are working part time and would like full time work.
B) increases in recessions
C) Shows a downward trend
D) is calculated as the percentage of the labor force who are unemployed or discouraged
3] At a business cycle trough, cyclical unemployment is ____ and at a business cycle peak, cyclical unemployment is _____.
A) postive; negative
B) zero; low
C) high; zero
D) negative; positive