3. Unemployment

d. describe types of unemployment and measures of unemployment;

How is somebody counted as being “unemployed”? To be counted as unemployed, a person must be actively seeking employment but currently without work.

What is the unemployment rate? The unemployment rate is the percentage of persons in the labor force who are unemployed.

Is unemployment rate a leading or lagging indicator of the economy? It is a lagging indicator.

What are discouraged workers? Discouraged workers believe that continuing the job search is fruitless and thus give up looking for a job.

What is voluntary unemployment? Voluntary unemployment refers to the number of persons in an economy without jobs because they choose to be unemployed.