Measuring Inflation and Unemployment: End of Chapter Problem12. At the start of a recovery following a recession, employment begins to rise, and the news media reports data on job growth.As a result, discouraged workers start to return to the labor force.As a result of the above events, the unemployment rate wouldrise or fall.first rise and then fall.rise.fall.

Answered: 12. At the start of a recovery…

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter6: Business Cycles And Unemployment

Section: Chapter Questions

Problem 10SQ

See similar textbooks

Similar questions

Which one of the following will increase the officially reported level of unemployment? A) More people resign from low-paid jobs. B) The school leaving age is raised. C) The retirement age is extended. D) More unemployed people become disheartened and give up looking for work.
Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will . The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government Establishing government-run employment agencies to connect unemployed workers to job vacancies Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks
Full employment unemployment rate" (also called the natural rate of unemployment) is defined as a) The situation when all people who want to work are actually employed. b) Zero involuntary unemployment. c) The unemployment rate that would exist in the absence of cyclical unemployment. d) The situation of only frictional unemployment. e) The unemployment rate that would exist in the absence of structural unemployment.
Suppose there are two major groups in the labor force, adults and teenagers, with adults divided into men and women. Teenagers account for 10% of the labor force, while adults account for 90%. Women make up 40% of the adult labor force. Suppose also that the unemployment rates for these groups are as follows: teenagers at 19%. men at 7%, and women at 6%. Calculate the overall unemployment rate in percent.
Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks Establishing government-run employment agencies to connect unemployed workers to job vacancies
Consider an economy with the following data: Employed = 891 million Unemployed = 9 million What is the unemployment rate in this economy? Group of answer choices A) 99% B) 1% C) 9% D) 9.9%
The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify each person in the table as structurally, frictionally, or cyclically unemployed. Unemployment Type Lucia just graduated from college and is looking for a full-time position with an investment banking firm. Demand for new vehicles has fallen during a recent recession, and Sharon has been laid off from her job at an automotive factory. Kenji recently lost his job as a delivery driver. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. The following table presents data on frictional, cyclical, structural, and total unemployment for an economy. Rate Unemployment Type (Percent) 3.6 0.0 1.1 4.7 Frictional Cyclical Structural Total unemployment True or False: This economy is not currently at its natural rate of unemployment. True False Structural Frictional Cyclical
1) Suppose the job separation rate (s) of an economy is 0.01 and the job findings rate (f) is 0.2. The long run unemployment rate (u) is then 4.7%. Suppose the government is implementing a new law that helps unemployed people find jobs sooner. Which of the following is the most likely outcome? a) s increases and u decreases b) s decreases and u increases c) fincreases and u increases d) f increases and u decreases
Suppose that in a population of 200 million persons, 150 million are in the labor force and 120 million are employed. Then the unemployment rate for this economy is: A) 20 percent B) 40 percent C) 60 percent D) 80 percent
Firms in the country of Merka, which experiences varying levels of unemployment over time, face a very competitive labor market. Classify the given events according to how each would affect Merka's unemployment rate. Increase in the unemployment rate Decrease in the unemployment rate Answer Bank decreased unemployment benefits increase in the minimum wage introduction of employment-at-will doctrine increase in unions' influence
Suppose the world price of aluminum falls significantly. The demand for labor among aluminum-producing firms in Pittsburgh will decrease demand for labor among airplane manufacturing firms in Washington, which use aluminum as an input, will unemployment that results from sectoral shifts such as the ones describes above is best categorized as frictional The temporary unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Improving a widely used job-search website so that it matches workers to job vacancies more effectively O Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government The
The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify each person in the table as structurally, frictionally, or cyclically unemployed. Unemployment Type Structural Frictional Cyclical Alyssa just moved with her husband to Portland, Oregon. She's looking for a job as a paralegal. A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off many of its employees, including Crystal. Tim recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.

SEE MORE QUESTIONS

Recommended textbooks for you

MACROECONOMICS FOR TODAY

Economics

ISBN:

9781337613057

Author:

Tucker

Publisher:

CENGAGE L

Economics For Today

Economics

ISBN:

9781337613040

Author:

Tucker

Publisher:

Cengage Learning

Survey Of Economics

Economics

ISBN:

9781337111522

Author:

Tucker, Irvin B.

Publisher:

Cengage,

MACROECONOMICS FOR TODAY

Economics

ISBN:

9781337613057

Author:

Tucker

Publisher:

CENGAGE L

Economics For Today

Economics

ISBN:

9781337613040

Author:

Tucker

Publisher:

Cengage Learning

Survey Of Economics

Economics

ISBN:

9781337111522

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Macroeconomics: Private and Public Choice (MindTa…

Economics

ISBN:

9781305506756

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Economics: Private and Public Choice (MindTap Cou…

Economics

ISBN:

9781305506725

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Economics:

Economics

ISBN:

9781285859460

Author:

BOYES, William

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS