1) The actual unemployment rate is equal to ________. A) the natural rate of unemployment plus the cyclical rate. B) the natural rate of unemployment minus the cyclical rate. C) the natural rate of unemployment times the cyclical rate. D) the natural rate of unemployment divided by the cyclical rate. 2) The natural rate of unemployment ________. A) is equal to 0.078 percent. B) is a constant. C) varies across time and countries. D) is equal to the cyclical rate of unemployment divided by the actual rate. 3) Many economists view ________ as explaining most of the increase in the natural rate of unemployment in the U.S. from 1960 to 1980. A) the rise in the percentage of young workers in the labor force B) an increase in the percentage of the working-age population receiving disability insurance C) a decrease in the size of the prison population D) increased use of temporary workers 4) Which of the following does not influence the natural rate of unemployment in the U.S.? A) demographics. B) the natural rate in Europe and Japan. C) the composition of the labor force. D) surprises in productivity growth. 5) Which of the following is not an aspect of the composition of the labor force? A) the prison population. B) workers taking disability. C) the use of temporary workers. D) the natural rate of unemployment. 6) People who end up in prison are particularly subject to ________. A) higher cyclical unemployment. B) higher structural unemployment. C) lower cyclical unemployment. D) lower seasonal unemployment. 7) Workers who suffer disability are likely to suffer higher ________. A) cyclical unemployment. B) tertiary unemployment. C) structural unemployment. D) natural unemployment. 8) An increase in the prison population would tend to cause, other things the same, a decrease in ________. A) federal disabilities benefits. B) the use of temporary workers. C) the college premium. D) the natural rate of unemployment. 9) Which of the following is likely to cause a decrease in the natural rate of unemployment? A) an increase in the percentage of the working-age population receiving disability insurance B) a decrease in the use of temporary workers C) a growing percentage of young workers in the labor force D) generous unemployment insurance benefits 10) Between 1980 and 2010, the share of temporary workers in total U.S. employment ________. A) fell. B) rose. C) remained essentially unchanged. D) cannot be calculated due to the increase in illegal immigration during this period.