When Individuals Are Out of Work Because They Do Not

question 144

Multiple Choice

When individuals are out of work because they do not have the skills necessary to perform available jobs,we call this

• A)structural unemployment.
• B)the natural rate of unemployment.
• C)cyclical unemployment.
• D)frictional unemployment.
• E)full employment (5 to 6 percent unemployment).

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Definitions:

Board of Governors

The Federal Reserve System’s governing body.

Federal Open Market Committee

A branch of the Federal Reserve that oversees open market operations, including the buying and selling of government securities, to influence the money supply and interest rates.

Open Market Operations

The buying and selling of government securities by a central bank to control the money supply and interest rates in the economy.

Federal Reserve

The central banking system of the United States, responsible for conducting national monetary policy and overseeing financial institutions.