1. If the economy currently has a frictional unemployment rate of 2 percent, structuralunemployment of 2 percent, seasonal unemployment of 0.5 percent, and cyclicalunemployment of 2 percent, what is the natural rate of unemployment? Where isthe economy operating relative to its potential GDP?

The natural rate of unemployment. Answer: The main types of unemployment include the cyclical,…

Answered: 1. If the economy currently has a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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True or False. Explain why. The business cycle is the primary reason behind demand-deficient unemployment type.
I only need part 3.
1
a. Suppose that in a small nation the adult population is 6 million, the number of employed is 3.8 million, and the labor force participation rate is 70%. What is the unemployment rate? b. Explain why unemployment rate can never be zero. C. Explain the differences between frictional unemployment and structural unemployment.
2.4 The Ford Motor Company employed fewer people in 2013 than it did in 1980. Is this decline in employment frictional, structural, cyclical, or some combination of these factors? What information would you need to arrive at a definite answer?
how do we answer this?
EXPLAIN..... In the long run, the unemployment rate is determined by ____. the rate of cyclical unemployment the rates of frictional and structural unemployment the rate of structural unemployment the rate of frictional unemployment
12. Name the type of unemployment occurring in each of the causes below. (a) Frank recently lost his job as the computer manufacturing company he works for recently downsized after poor sales and poor performance of the economy during the last Type of unemployment: (frictional, cyclical, structural ) year. (b) Julie just recently graduated from college and is spending the summer traveling before she begins a job with a consulting firm in the fall. Type of unemployment: (frictional , cyclical, structural) (c) Tom recently lost his job as the steel manufacturing firm he worked for moved their plant overseas. The other steel plants in the nation have been also been following this trend. Type of unemployment: (frictional , cyclical, structural ) The full-employment or natural rate of unemployment assumes there is no ( among the three types of unemployment. unemployment
1. a. Suppose the adult population over the age of 16 is 138 million and the labor force is 103 million (of whom 95 million are employed). How many people are "not in the labor force?" What are the proportions of employed, unemployed and not in the labor force in the population? Hint: Proportions are percentages. b. Using the above data, what is the unemployment rate?
7. What kind of indicator is the rate of unemployment? Explain your answer.
Recovery won't Improve unemployment Despite some optimism about the seeds of recovery, the Congressional Budget Office (CBO) sees joblessness rising. The CBP sees unemployment peaking at 10.4% next year from an average of 9.3% this year, before it falls to 9.1% in 2011. Source: Fortune, August 25, 2009 Why does unemployment continue to rise as an expansion begins? OA. The unemployment rate is a leading indicator of the business cycle, so unemployment continues to rise as an expansion begins. OB. In the early stages of an expansion, the labor force decreases. OC. In the early stages of an expansion, unemployment increases as firms lay off workers in an attempt to cut costs. D. As an expansion begins, previously marginally attached workers look for jobs, exceeding the number of people hired.
The structural unemployment rate is 4 percent, the natural unemployment rate is 5 percent, and the cyclical unemployment rate is 3 percent. The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent. A. 2; 7 B. 2; 8 C. 1; 7 D. 1; 8

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1. If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent, and cyclical unemployment of 2 percent, what is the natural rate of unemployment? Where is the economy operating relative to its potential GDP?