# Chapter 8- Unemployment and Inflation

Who reports the official U.S. unemployment rate?
unemployment collection offices
the U.S. Treasury Department
the U.S. Federal Reserve
the U.S. Bureau of Labor Statistics
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Which of the factors would decrease the rate of frictional unemployment?

an increase in the number of jobs available due to an increase in GDP

increased short-term unemployment benefits

improvements in technology that make skills which were once valued by employers obsolete

the advent of the Internet, which makes finding available jobs easier
Determine if the people in the example have benefited - i.e., are winners - or have been harmed - i.e., are losers - by unexpected inflation.

a. The United States federal government, which had almost $15 trillion in debt in 2011 b. Karen, a retired school teacher who relies upon her fixed pension to pay for her expenses c. Third National, a bank that loaned many people money for home purchases d. Joy, who borrowed$40,000 to pay for her college education

e. Herb, who keeps his savings in an old coffee can
The natural rate of unemployment equals

frictional unemployment plus structural unemployment.

frictional unemployment plus minimally attractive workers.

frictional unemployment plus cyclical unemployment.

structural unemployment minus cyclical unemployment.

cyclical unemployment plus structural unemployment.
Identify whether the actions or scenarios would likely increase or decrease the natural rate of unemployment.

i. Increasing the minimum wage

ii. Reducing workers' collective bargaining rights

iii. Extra financial benefits for the unemployed

iv. A large number of young people entering the labor force

v. More funding for government worker training programs

vi. An increase in union membership

vii. An increase in information about job opportunities