Based on the data in the table below, Population Labor force Unemployment rate Year 1 320 million 150 million 6 percent b. Unemployment rate. In Year 2, what happens to each of the following when 1 million job seekers become "discouraged workers"? a. Number of unemployed persons. O Uncertain O Increases O No change O Decreases Year 2 330 million 160 million 6 percent O Decreases O Increases O Uncertain O No change c. Number of employed persons. O Uncertain O Decreases O Increases O No change 4

Based on the data in the table below, Population Labor force Unemployment rate Year 1 320 million 150 million 6 percent b. Unemployment rate. In Year 2, what happens to each of the following when 1 million job seekers become "discouraged workers"? a. Number of unemployed persons. O Uncertain O Increases O No change O Decreases Year 2 330 million 160 million 6 percent O Decreases O Increases O Uncertain O No change c. Number of employed persons. O Uncertain O Decreases O Increases O No change 4

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Unemployment

Section: Chapter Questions

Problem 4PA

See similar textbooks

Similar questions

What happens to the labor force participation rate when employed individuals are reclassified as unemployed? What happens when they are reclassified as discouraged workers?
Suppose the adult population over the age of 16 is 237.8 million and the labor force is 153.9 million (of whom 139.1 million are employed). How many people are not in the labor force? What are the proportions of employed, unemployed and nut in the labor force in the population? Hint: Proportions ate percentages.
Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder than in many other countries?
What is frictional unemployment? Give examples of frictional unemployment.
Whose unemployment rates are commonly higher in the U.S. economy: Whites or nonwhites? The young or the middle-aged? College graduates or high school graduates?
What forces create the natural rate of unemployment for an economy?
Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.
Are U.S. unemployment rates distributed evenly across the population?
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.
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.
What is structural unemployment? Give examples of structural unemployment.
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.