Answer to Question #113886 in Macroeconomics for muhammer

Question

Which of the following statements is true, which statement is false? Explain for each statement whether it is true or false.
1) When more people who are not working start looking for jobs, the labor-force participation rate increases.
2) An increase in search costs will decrease structural unemployment.
3) The natural rate of unemployment is the unemployment rate during a period of full employment.
4) Anyone 16 years of age or older who is not classified as employed is classified as unemployed.
6) An unemployment rate of 10% means that the average worker has been unemployed for 10% of the year.
7) If labor markets were perfectly efficient, the unemployment rate would fall to zero.
8) The natural rate of unemployment in the economy is determined by the Congress and the president of the country.
9) The natural rate of unemployment varies based on inflation rates.
10) The Consumer Price Index is a fixed-weight index.

Answer 1

1) true

2)false

3)true

4)true

6)false

7)true

8)true

9) false

10)true