Chapter 25. Question 16

Question 16

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You must read each slide, and complete any questions on the slide, in sequence.

During the recession from December 2007 to June 2009, the U.S. economy lost a total of 7,163,000 jobs.

A. How many jobs were lost per month, on average?

Incorrect! The period from December 2007 to June 2009 is 18 months. 7,163,000÷18 ≈397,944.

Correct! The period from December 2007 to June 2009 is 18 months. 7,163,000÷18 ≈397,944.

B. Suppose that a healthy economy generates an average of 200,000 jobs per month. At this rate, how long would it take the economy to gain back the number of jobs it had lost? years

Incorrect! To calculate the number of months, divide the number of jobs needed by the number of jobs per month. 7,163,000÷200,000 = 35.8 months. This is about 3 years.

Correct! To calculate the number of months, divide the number of jobs needed by the number of jobs per month. 7,163,000÷200,000 = 35.8 months. This is about 3 years.

C. According to data from the Bureau of Labor Statistics, the U.S. economy gained 5,485,000 jobs from June 2009 to June 2013. What was the average number of jobs per month created during the first four years of recovery?

Incorrect! Four years is 48 months. 5,485,000÷48 ≈ 114,271.

Correct! Four years is 48 months. 5,485,000÷48 ≈ 114,271.

D. Given your answers to the previous two questions, what does this suggest about the pace of economic recovery after the 2007–2009 recession?

Job growth was faster during the recovery than it was before the recession.

Job growth was slower during the recovery than it was before the recession.

Job growth was about the same during the recovery than it was before the recession.

Incorrect! Before the recession, the healthy economy added 200,000 jobs per month. During the recovery, only 114,271 jobs per month were added. This suggests that the pace of economic recovery was very slow after the recession.

Correct! Before the recession, the healthy economy added 200,000 jobs per month. During the recovery, only 114,271 jobs per month were added. This suggests that the pace of economic recovery was very slow after the recession.