Attempts7. Types of unemploymentAverage / 2In the following table, determine what type of unemployment best describes each situation.FrictionalUnemploymentStructuralUnemploymentCyclicalUnemploymentRosa was a highly skilled instrument maker, but she hasn't been able tofind work in the field since her workshop closed due to competition frominstrument makers in China.OCharles quit his part-time job to search full time for a job that was moreclosely related to his education.OOEleanor was laid off from the gold mine where she worked, because arecession caused a decrease in demand for metals.OOOOImagine an economy where the natural rate of unemployment is 4% and the cyclical rate of unemployment is 2%. In this economy the total rate ofunemployment would beand the frictional rate of unemployment would be ▼. (Select ?% if the rate cannot be determined from theinformation given.)acer

Frictional Unemployment: Occurs when individuals are searching for new jobs or transitioning between…

Answered: Attempts 7. Types of unemployment…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 7P

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Similar questions

If you an? out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greater at Wal-Mart are you considered employed or not in the labor force?
While unemployment is highly negatively correlated with the level of economic activity, in the real world it responds with a lag. In other wands, firms do not immediately lay off workers in response to a sales decline. They wait a while before responding. Similarly, firms do not immediately hire workers when sales pick up. What do you think accounts for the lag in response time?
Is it desirable to eliminate natural unemployment? Why or why not? Hint: Think about what our economy would look like today and what assumptions would have to be met to have a zero rate of natural unemployment.
What is structural unemployment? Give examples of structural unemployment.
Are U.S. unemployment rates distributed evenly across the population?
Assess whether the following would be counted as unemployed in the Current Employment Statistics survey. A husband willingly stays home with children while his wife works. A manufacturing worker whose factory just closed down. A college student doing an unpaid summer internship. A retiree. Someone who has been out of work for two years but keeps looking for a job. Someone who has been out of work for two months but isnt looking for a job. Someone who hates her present job and is actively looking for another one. Someone who decides to take a part time job because she could not find a full time position.
What is the difference between being unemployed and being out of the labor force?
What forces create the natural rate of unemployment for an economy?
Would you expect the natural rate of unemployment to remain the same within one country over the long run of several decades?
Unemployment rates have been higher in many European countries in recent decades than in the United States. Is the main reason for this long-term difference in unemployment rates more likely to be cyclical unemployment or the natural rate of unemployment? Explain briefly.
A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest 0f the adult population is out of the labor force. Whats the unemployment rate? What share of population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.
The U.S. unemployment rate increased from 4.6 in July 2001 to 5.9 by June 2002. Without studying the subject in any detail, would you expect that a change of this kind is more likely to be due to cyclical unemployment or a change in the natural rate of unemployment? My?

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