Define and give an example for each of the following types or categories of unemployment: a. frictional unemployment b. structural unemployment c. cyclical unemployment Suppose an economy has 3 million people employed. Of these, there are 500,000 who can only find part-time work. Suppose also that 1 million workers are not employed but actively seeking work (they looked in the prior 4 weeks). Finally, suppose another 500,000 people want a job but have given up looking and haven't looked for work in 6 months. Calculate the unemployment rate for this economy using the methods for the official unemployment rate (also referred to as U3). How did you get your answer?
Define and give an example for each of the following types or categories of unemployment: a. frictional unemployment b. structural unemployment c. cyclical unemployment Suppose an economy has 3 million people employed. Of these, there are 500,000 who can only find part-time work. Suppose also that 1 million workers are not employed but actively seeking work (they looked in the prior 4 weeks). Finally, suppose another 500,000 people want a job but have given up looking and haven't looked for work in 6 months. Calculate the unemployment rate for this economy using the methods for the official unemployment rate (also referred to as U3). How did you get your answer?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Define and give an example for each of the following types or categories of
-
a. frictional unemployment
-
b. structural unemployment
-
c. cyclical unemployment
Suppose an economy has 3 million people employed. Of these, there are 500,000 who can only find part-time work. Suppose also that 1 million workers are not employed but actively seeking work (they looked in the prior 4 weeks). Finally, suppose another 500,000 people want a job but have given up looking and haven't looked for work in 6 months.
Calculate the unemployment rate for this economy using the methods for the official unemployment rate (also referred to as U3). How did you get your answer?
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