In Late 2006, the Unemployment Rate Increased from 4

question 168

Multiple Choice

In late 2006, the unemployment rate increased from 4.4 percent to 4.5 percent. It was reported that new jobs were created in several sectors including accounting, engineering services, computer design and education. These increases offset job losses in the construction and automobile industries. At the same time, the natural unemployment rate was estimated to be about 5.5 percent
Www) nytimes.com, 12/9/2006
Based on the story, the labor market reflects

• A) a positive output gap.
• B) a negative output gap.
• C) cyclical unemployment.
• D) efficiency wages.

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Definitions:

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations, aiming to ensure smooth, predictable, and free trade.

Geneva

A city in Switzerland that hosts the headquarters of numerous international organizations, including parts of the United Nations and the Red Cross.

Members

Individuals who belong to a group, organization, or community, sharing certain rights, privileges, or obligations.

Global Gross Domestic Product

The total market value of all goods and services produced across all countries in the world within a given period, often used as a measure of global economic health.