AP Macro Unemployment 2

Question 1

Which of the following workers would be classified as structurally unemployed?

Accepted Answer

A coal miner whose job was eliminated by automation

Answer

Structural unemployment occurs when workers' skills no longer match available jobs due to technological or industrial change.

Question 2

If the natural rate of unemployment is 4% and actual unemployment is 7%, the economy is experiencing:

Accepted Answer

A negative output gap

Answer

Unemployment above the natural rate means output is below potential, creating a negative (recessionary) output gap.

Question 3

Which policy would MOST directly reduce frictional unemployment?

Accepted Answer

Improving job-matching websites and career counseling services

Answer

Better job-matching resources reduce the time workers spend searching between jobs, directly lowering frictional unemployment.

Question 4

A person who has given up looking for work is called:

Accepted Answer

A discouraged worker

Answer

Discouraged workers have stopped actively seeking employment and are excluded from the official unemployment rate.

Question 5

Which statement about the unemployment rate is most accurate?

Accepted Answer

It may understate true joblessness by excluding discouraged workers

Answer

The official rate excludes discouraged workers and underemployed part-timers, likely understating the full extent of labor underutilization.

AP Practice Test