147.c ms/mod/ibis/viO of 21 pling Learning Please decide whether each of the fll

ID: 1145801 • Letter: 1

Question

147.c ms/mod/ibis/viO of 21 pling Learning Please decide whether each of the fllowing statements about the U.S. unemployment rate are true or false. True False The behavior of the unemployment rate is related to the business cycle its very likely that an unemployment rate of 0% will never be observed. Changes in technology and new workers joining the workforce have contributed to an overall upward trend in the unemployment rate Unemployment generally remains stable and static over time. The end of the 20th century saw some of the highest rates of unemplayment in US history Hint

Explanation / Answer

TRUE

FALSE

The behaviour of unemployment rate is related to the business cycle.

Business cycle consist of good periods and bad periods. Periods with good trade decreases the unemployment rate and periods of bad trade results in increase in unemployment.

Unemployment generally remains stable and stastic over time.

This is also an imaginary condition. In the long run it increases.

Its very likely that an unemployment rate of 0% will never be observed.

It is a hypothetical condition to imagine. Full employment is is something different from zero unemployment. In a market economy unemployment rate of sero is not possible.

Changes in the technology and new workers joining the workforce have contributed to an overall upward trend in the unemployment rate.

Changing in technology creates new opportunities for the workforce. Hence, its not always wise to conclude that change in technology increases unemployment.

The end of the 20th century saw some of the highest rates of unemployment in US history.

The highest rates of unemployment in US history is in 1933 at the time of the great depression.