U.S. Adds a Whopping 162,000 Jobs in a Bright Spot for the Economy

Answer the following questions to check your understanding of the story.

What is the downside to having a historically low unemployment rate?

a) Workers leave the labor market because they can’t find jobs.

b) Structural and frictional unemployment continues to exist.

c) Businesses have trouble finding available workers.

d) Cyclical unemployment is the primary type of unemployment.

What does the output gap tell us about the natural unemployment rate?

a) We don’t know anything about the natural unemployment rate.

b) The natural unemployment rate is greater than 4.1 percent.

c) The natural unemployment rate equals 4.1 percent.

d) The natural unemployment rate is less than 4.1 percent.

What is the expected Federal Open Market Committee (FOMC) decision at its September 15-16 meeting?

a) Lower interest rates

b) Increase government spending

c) Raise interest rates

d) Instruct banks to increase loans

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