1. Anyone who is not classified as either unemployed or employed is not in the labor force.
2. When 95% of of the labor force is employed it's known as full employment.
3. Unemployed workers have jobs beneath their skill level.
4. Di scourged workers want to find jobs but have stopped looking.
5. Unemployment rate is the most closely watched and highly publicized labor force statistic.
1. Higher interest rates lead to less consumer spending.
2. A price index is used to measure the price level.
3. The price index is also used to calculate the inflation rate.
4. A supply shock in an event that increases the cost of production for all or many firms.
5. Hyperinflation is the worst form of inflation.
1. The poverty threshold is the lowest income level that a family needs to maintain a basic standard of living.
2. The poverty rate is the percentage of individuals or families living in poverty.
3. Rapid changes in technology have led to a drop in demand for lower-skilled workers.
4. Raising minimum wage is just one suggesting for improving income equality.
5. The income gap between the richest and poorest Americans was wider in the 1990's than any time since World War II.