Question 1
Which of the following statements is
true?
◦ The unemployment rate does not tell us anything about the duration of unemployment.
◦ The duration of unemployment decreases during recessions.
◦ The duration of unemployment increases during economic expansions.
◦ The median duration of unemployment is usually greater than the average duration.
Question 2
The labor force participation rate is the
◦ total number of people who are participating in the labor force.
◦ ratio of the number of employed people to the number of unemployed people.
◦ ratio of the labor force to the total population 16 years old or older.
◦ the number of people in the labor force minus the number of people who are unemployed.