Chapter 28UnemploymentTRUE/FALSE1. Most people rely on income other than their labor earnings to maintain their standard of living.ANS: F DIF: 1 REF: 28-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Income | Standard of living MSC: Definitional2. The amount of unemployment that a country typically experiences is a determinant of that country's standardof living.ANS: T DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Unemployment | Standard of living MSC: Definitional3. Some degree of unemployment is inevitable in a complex economy.ANS: T DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional4. The amount of unemployment varies little over time and across countries.ANS: F DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional5. When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than itwould if it left many of its workers standing idle.ANS: T DIF: 1 REF: 28-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Employment | GDP MSC: Definitional6. An economy’s natural rate of unemployment refers to the amount of unemployment that the eco nomynormally experiences.ANS: T DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional7. Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate. ANS: T DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflation TOP: Cyclical unemploymentMSC: Definitional8. The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity. ANS: F DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional9. The natural rate of unemployment is the desirable rate of unemployment for an economy.ANS: F DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional10. The natural rate of unemployment is constant over time.ANS: F DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional1872Chapter 28/Unemployment 1873 11. The natural rate of unemployment is impervious to economic policy.ANS: F DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional12. Government policy can do nothing about the natural rate of unemployment.ANS: F DIF: 2 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Interpretive13. The natural rate of unemployment is a type of unemployment that does not go away on its own even in thelong run.ANS: T DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional14. Long-run unemployment arises from a single problem that has a single solution.ANS: F DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional15. There is no easy way for policymakers to reduce the economy’s natural rate of unemployment.ANS: T DIF: 1 REF: 28-0NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional16. Measuring unemployment is the job of the Bureau of Labor Statistics.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional17. Measuring unemployment is the job of the Bureau of Labor Statistics, which is part of the U.S. Department ofCommerce.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional18. Every week, the Bureau of Labor Statistics produces data on unemployment.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional19. The Bureau of Labor Statistics produces data on unemployment, types of employment, length of the averageworkweek, and the duration of unemployment.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional20. The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from aregular survey of about 600 households, called the Current Population Survey.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional21. The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from aregular survey of about 60,000 households, called the Current Population Survey.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional1874 Chapter 28/Unemployment22. The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from aregular survey of about 60,000 households, called the Census.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional23. The Bureau of Labor Statistics places each adult (aged 16 and older) of each surveyed household into one ofthree categories: employed, unemployed, and not in the labor force.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional24. The Bureau of Labor Statistics places each adult (aged 16 and older) of each surveyed household into one offour categories: employed, underemployed, unemployed, and not in the labor force.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Bureau of Labor Statistics MSC: Definitional25. The Bureau of Labor Statistics’ “employed” category includes those who worked as paid employees, workedin th eir own business, or worked as unpaid workers in a family member’s business.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Employment MSC: Definitional26. Only paid worker s are included in the Bureau of Labor Statistics’ “employed” category.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Employment MSC: Interpretive27. Both full-time and part-time workers are included in the Bureau of Labor Statistics’ “employed” category. ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Employment MSC: Definitional28. Some adul ts who were not working are included in the Bureau of Labor Statistics’ “employed” category. ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Employment MSC: Interpretive29. Adults who were not working but who had jobs from which they were temporarily absent are included in theBureau of Labor Statistics’ “employed” category.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Employment MSC: Definitional30. Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureauof Labor Statistics’ “employed” category.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Employment MSC: Interpretive31. The Bureau of Labor Statistics’ “unemployed” category includes those who were not employed, wereavailable for work, and had tried to find employment during the previous 4 weeks.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment MSC: DefinitionalChapter 28/Unemployment 1875 32. Every adult who was not employed during the previous 4 weeks is included in the Bureau of Labor Statistics’“unemployed” category.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment MSC: Interpretive33. Someone who is without work but is not looking for work i s included in the Bureau of Labor Statistics’“unemployed” category.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment MSC: Interpretive34. Full-time students and homemakers are included in the Bureau of Labor Statistics’ “unemployed” category. ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment MSC: Interpretive35. Stay-at-home fathers are included in the Bureau of Labor Statistics’ “unemployed” category.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment MSC: Interpretive36. Adults who were waiting to be recalled to a job from which they had been laid off are included in the Bureauof Labor Statistics’ “unemployed” category.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment MSC: Definitional37. Retirees are included in the Bureau of La bor Statistics’ “not in the labor force” category.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Labor force MSC: Definitional38. The adult population must equal the sum of the employed, the unemployed, and those not in the labor force. ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Adult population MSC: Interpretive39. The adult population must equal the sum of the employed and the unemployed.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Adult population MSC: Interpretive40. The Bureau of Labor Statistics defines the labor force as the sum of the employed and the unemployed. ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Labor force MSC: Definitional41. The labor force minus the number of employed equals the number of unemployed.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Interpretive42. The Bureau of Labor Statistics defines the unemployment rate as the percentage of the adult population that isunemployed.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment rate MSC: Definitional1876 Chapter 28/Unemployment43. The Bureau of Labor Statistics defines the unemployment rate as the percentage of the labor force that isunemployed.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment rate MSC: Definitional44. The Bureau of Labor Statistics computes unemployment rates for the entire adult population and for morenarrowly defined groups.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | Unemployment rate MSC: Definitional45. The Bureau of Labor Statistics defines the labor-force participation rate as the percentage of the labor forcethat is employed.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Labor-force participation rate MSC: Definitional46. The Bureau of Labor Statistics defines the labor-force participation rate as the percentage of the total adultpopulation that is in the labor force.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Labor-force participation rate MSC: Definitional47. The labor-force participation rate is the percentage of the adult population that is either employed orunemployed.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Interpretive48. The labor-force participation rate tells us the fraction of the population that is able to participate in the labormarket.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional49. The labor-force participation rate tells us the fraction of the population that has chosen to participate in thelabor market.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional50. The Bureau of Labor Statistics computes labor-force participation rates for the entire adult population and formore narrowly defined groups.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Labor-force participation rate MSC: DefinitionalTable 28-52010 Labor Data for Wrexington51. Refer to Table 28-5. The total adult population of Wrexington in 2010 is 30,000.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Adult population MSC: ApplicativeChapter 28/Unemployment 1877 52. Refer to Table 28-5. The total adult population of Wrexington in 2010 is 12,250.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Adult population MSC: Applicative53. Refer to Table 28-5. The labor force of Wrexington in 2010 is 12,250.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor force MSC: Applicative54. Refer to Table 28-5. The labor force of Wrexington in 2010 is 10,000.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor force MSC: Applicative55. Refer to Table 28-5. The unemployment rate of Wrexington in 2010 is about 18.4 percent.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Applicative56. Refer to Table 28-5. The unemployment rate of Wrexington in 2010 is about 7.5 percent.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Applicative57. Refer to Table 28-5. The labor-force participation rate of Wrexington in 2010 is about 40.8 percent.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Applicative58. Refer to Table 28-5. The labor-force participation rate of Wrexington in 2010 is about 33.3 percent.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Applicative59. Within the U.S. population, women ages 20 and older have lower rates of labor-force participation than men. ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional60. Within the U.S. population, women ages 20 and older have similar rates of labor-force participation as men. ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional61. Within the U.S. population, men and women have similar rates of unemployment.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Definitional62. Within the U.S. population, women have higher rates of unemployment than men.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Definitional63. Within the U.S. population, blacks ages 20 and older have similar rates of labor-force participation as whites. ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional1878 Chapter 28/Unemployment64. Within the U.S. population, blacks ages 20 and older have lower rates of labor-force participation than whites. ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional65. Within the U.S. population, blacks have higher rates of unemployment than whites.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Definitional66. Within the U.S. population, blacks and whites have similar rates of unemployment.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Definitional67. Within the U.S. population, teenagers have lower rates of labor-force participation than older workers.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional68. Within the U.S. population, teenagers have similar rates of labor-force participation as older workers.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional69. Within the U.S. population, teenagers have higher rates of unemployment than older workers.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Definitional70. Within the U.S. population, teenagers have similar rates of unemployment as older workers.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Definitional71. Data on the unemployment rate in the U.S. since 1960 show that the economy always has some unemploymentand that the amount changes from year to year.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Definitional72. Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate sometimes is zero. ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Interpretive73. The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate ofunemployment.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional74. The normal rate of unemployment around which the unemployment rate fluctuates is called cyclicalunemployment.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: DefinitionalChapter 28/Unemployment 1879 75. The deviation of unemployment from its natural rate is called cyclical unemployment.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Cyclical unemploymentMSC: Definitional76. Economists at the Congressional Budget Office estimated that for 2007, the U.S. natural rate of unemploymentwas 4.8 percent.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional77. In 2007, the U.S. natural rate of unemployment was estimated to be 4.8 percent, which was close to the actualrate of unemployment of 4.6 percent.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Natural rate of unemployment MSC: Definitional78. Causes of the changing role of women in American society over the past several decades include newtechnologies that have reduced the amount of time required to complete routine household tasks, improved birth control, and changing political and social attitudes.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Role of women MSC: Interpretive79. Over the past several decades, the difference between the labor-force participation rates of men and women inthe U.S. has gradually decreased.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional80. Over the past several decades, the difference between the labor-force participation rates of men and women inthe U.S. has gradually increased.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional81. Over the past several decades in the United States, the labor-force participation rate of women has increasedand the labor-force participation rate of men had decreased.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional82. Over the past several decades in the United States, the labor-force participation rate of women has increasedand the labor-force participation rate of men had remained steady.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Definitional83. Causes of t he decline in the U.S. men’s labor-force participation rate over the past several decades includeyoung men now staying in school longer than their fathers and grandfathers did, older men now retiring earlier and living longer, and more fathers now staying at home to raise their children.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Interpretive84. Even though the difference in labor-force participation rates of U.S. males and females has narrowed, thelabor-force participation rate of males remains higher than that of females.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Labor-force participation rate MSC: Interpretive1880 Chapter 28/Unemployment85. Measuring the amount of unemployment in the economy is a straightforward task.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional86. More than one-third of the unemployed are recent entrants into the labor force.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional87. More than three-fourths of the unemployed are recent entrants into the labor force.ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional88. Not all unemployment ends with the job seeker finding a job.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional89. Almost half of all spells of unemployment end when the unemployed person leaves the labor force.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional90. Almost nine-tenths of all spells of unemployment end when the unemployed person leaves the labor force. ANS: F DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional91. Because people move into and out of the labor force so often, statistics on unemployment are difficult tointerpret.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: UnemploymentMSC: Definitional92. People who report being unemployed but who, in fact, are not trying hard to find a job are really not in thelabor force and therefore cause the reported unemployment rate to be higher than it would otherwise be. ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Interpretive93. Rupert is collecting unemployment insurance benefits. To continue to receive his benefits, he must belooking for work. Because he’d like to continue collecting benefits rather than take a job, he applies at places that are unlikely to hire him. People like Rupert make the reported unemployment rate less than it would otherwise be.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Interpretive94. People who report being unemployed but who, in fact, are working for “under the table” pay to avoid taxes ontheir earnings are really employed and therefore cause the reported unemployment rate to be higher than it would otherwise be.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: InterpretiveChapter 28/Unemployment 1881 95. People who report being not in the labor force but who, in fact, want to work but have given up trying to find ajob after an unsuccessful search are really unemployed and therefore cause the reported unemployment rate to be lower than it would otherwise be.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Interpretive96. Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessfulsearch.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Discouraged workersMSC: Definitional97. It is best to view the official unemployment rate as a useful but imperfect measure of joblessness.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Definitional98. The unemployment rate reported by the Bureau of Labor Statistics clearly understates the true unemploymentrate.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment rateMSC: Interpretive99. The Bureau of Labor Statistics defines marginally attached workers as persons who currently are neitherworking nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Marginally attached workers MSC: Definitional100. The Bureau of Labor Statistics defines discouraged workers as marginally attached workers who have given a job-market related reason for not currently looking for a job.ANS: T DIF: 1 REF: 28-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Bureau of Labor Statistics | Discouraged workers MSC: Definitional101. Th e Bureau of Labor Statistics’ U-1 measure of joblessness is smaller than its U-6 measure of joblessness. ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | U-1 | U-6 MSC: Interpretive102. The Bureau o f Labor Statistics’ U-1 measure of joblessness is larger than its U-6 measure of joblessness. ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | U-1 | U-6 MSC: Interpretive103. The Bureau of Labor St atistics’ U-1 measure of joblessness includes only very long-term unemployed. ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | U-1 MSC: Interpretive104. The Bureau of Labor Statistics’ U-2 measure of joblessness includes job losers and job leavers.ANS: F DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | U-2 MSC: Interpretive105. The Bureau of Labor Statistics’ U-3 measure of joblessness is the official unemployment rate.ANS: T DIF: 2 REF: 28-1NAT: Analytic LOC: Unemployment and inflationTOP: Bureau of Labor Statistics | U-3 MSC: Interpretive。