The question requires us to explain the statement “frictional unemployment always exists.”

Question

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Answer 1

Question

Chapter 13, Problem 1CYU

a)

To determine

The question requires us to explain the statement “frictional unemployment always exists.”

a)

Expert Solution

Explanation of Solution

An individual is considered unemployed who is not working, but actively looking for a job.

Frictional unemployment reflects the unemployment that occurs during the time workers spend in a job search. A certain amount of such unemployment is expected always in an economy because job creation and job destruction are constant processes. Few industries hire workers while at the same time few industries fire their workers based on the nature of production, current demand and future expected sales of the product that industry is producing and annual returns of the firms.

So, a certain number of frictionally unemployed workers are expected always in the economy.

b)

To determine

The question requires us to explain a reason for a larger share of frictional unemployment in total unemployment.

b)

Expert Solution

Explanation of Solution

In an economy, frictional unemployment exists for a certain amount always and this unemployment is generally harmless and may even be beneficial in small amounts. If employees take the time to choose occupations that are ideally matched to their skills, the economy will be more productive, and workers who are temporarily jobless while looking for the ideal position won't suffer greatly. In reality, periods of unemployment tend to be short when the unemployment rate is low, indicating that a large portion of the unemployed is frictional. Workers tend to be unemployed for longer periods during times of higher unemployment, which suggests that a smaller proportion of unemployment is frictional.

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Answer 2

Question

Chapter 13, Problem 1CYU

a)

To determine

The question requires us to explain the statement “frictional unemployment always exists.”

a)

Expert Solution

Explanation of Solution

An individual is considered unemployed who is not working, but actively looking for a job.

Frictional unemployment reflects the unemployment that occurs during the time workers spend in a job search. A certain amount of such unemployment is expected always in an economy because job creation and job destruction are constant processes. Few industries hire workers while at the same time few industries fire their workers based on the nature of production, current demand and future expected sales of the product that industry is producing and annual returns of the firms.

So, a certain number of frictionally unemployed workers are expected always in the economy.

b)

To determine

The question requires us to explain a reason for a larger share of frictional unemployment in total unemployment.

b)

Expert Solution

Explanation of Solution

In an economy, frictional unemployment exists for a certain amount always and this unemployment is generally harmless and may even be beneficial in small amounts. If employees take the time to choose occupations that are ideally matched to their skills, the economy will be more productive, and workers who are temporarily jobless while looking for the ideal position won't suffer greatly. In reality, periods of unemployment tend to be short when the unemployment rate is low, indicating that a large portion of the unemployed is frictional. Workers tend to be unemployed for longer periods during times of higher unemployment, which suggests that a smaller proportion of unemployment is frictional.

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Answer 3

Question

Chapter 13, Problem 1CYU

a)

To determine

The question requires us to explain the statement “frictional unemployment always exists.”

a)

Expert Solution

Explanation of Solution

An individual is considered unemployed who is not working, but actively looking for a job.

Frictional unemployment reflects the unemployment that occurs during the time workers spend in a job search. A certain amount of such unemployment is expected always in an economy because job creation and job destruction are constant processes. Few industries hire workers while at the same time few industries fire their workers based on the nature of production, current demand and future expected sales of the product that industry is producing and annual returns of the firms.

So, a certain number of frictionally unemployed workers are expected always in the economy.

b)

To determine

The question requires us to explain a reason for a larger share of frictional unemployment in total unemployment.

b)

Expert Solution

Explanation of Solution

In an economy, frictional unemployment exists for a certain amount always and this unemployment is generally harmless and may even be beneficial in small amounts. If employees take the time to choose occupations that are ideally matched to their skills, the economy will be more productive, and workers who are temporarily jobless while looking for the ideal position won't suffer greatly. In reality, periods of unemployment tend to be short when the unemployment rate is low, indicating that a large portion of the unemployed is frictional. Workers tend to be unemployed for longer periods during times of higher unemployment, which suggests that a smaller proportion of unemployment is frictional.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 1CYU

a)

To determine

The question requires us to explain the statement “frictional unemployment always exists.”

a)

Expert Solution

Explanation of Solution

An individual is considered unemployed who is not working, but actively looking for a job.

Frictional unemployment reflects the unemployment that occurs during the time workers spend in a job search. A certain amount of such unemployment is expected always in an economy because job creation and job destruction are constant processes. Few industries hire workers while at the same time few industries fire their workers based on the nature of production, current demand and future expected sales of the product that industry is producing and annual returns of the firms.

So, a certain number of frictionally unemployed workers are expected always in the economy.

b)

To determine

The question requires us to explain a reason for a larger share of frictional unemployment in total unemployment.

b)

Expert Solution

Explanation of Solution

In an economy, frictional unemployment exists for a certain amount always and this unemployment is generally harmless and may even be beneficial in small amounts. If employees take the time to choose occupations that are ideally matched to their skills, the economy will be more productive, and workers who are temporarily jobless while looking for the ideal position won't suffer greatly. In reality, periods of unemployment tend to be short when the unemployment rate is low, indicating that a large portion of the unemployed is frictional. Workers tend to be unemployed for longer periods during times of higher unemployment, which suggests that a smaller proportion of unemployment is frictional.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1CYU

a)

To determine

The question requires us to explain the statement “frictional unemployment always exists.”

a)

Expert Solution

Explanation of Solution

An individual is considered unemployed who is not working, but actively looking for a job.

Frictional unemployment reflects the unemployment that occurs during the time workers spend in a job search. A certain amount of such unemployment is expected always in an economy because job creation and job destruction are constant processes. Few industries hire workers while at the same time few industries fire their workers based on the nature of production, current demand and future expected sales of the product that industry is producing and annual returns of the firms.

So, a certain number of frictionally unemployed workers are expected always in the economy.

b)

To determine

The question requires us to explain a reason for a larger share of frictional unemployment in total unemployment.

b)

Expert Solution

Explanation of Solution

In an economy, frictional unemployment exists for a certain amount always and this unemployment is generally harmless and may even be beneficial in small amounts. If employees take the time to choose occupations that are ideally matched to their skills, the economy will be more productive, and workers who are temporarily jobless while looking for the ideal position won't suffer greatly. In reality, periods of unemployment tend to be short when the unemployment rate is low, indicating that a large portion of the unemployed is frictional. Workers tend to be unemployed for longer periods during times of higher unemployment, which suggests that a smaller proportion of unemployment is frictional.

Answer 6

Chapter 13, Problem 1CYU

a)

To determine

The question requires us to explain the statement “frictional unemployment always exists.”

a)

Expert Solution

Explanation of Solution

An individual is considered unemployed who is not working, but actively looking for a job.

Frictional unemployment reflects the unemployment that occurs during the time workers spend in a job search. A certain amount of such unemployment is expected always in an economy because job creation and job destruction are constant processes. Few industries hire workers while at the same time few industries fire their workers based on the nature of production, current demand and future expected sales of the product that industry is producing and annual returns of the firms.

So, a certain number of frictionally unemployed workers are expected always in the economy.

Answer 7

Chapter 13, Problem 1CYU

a)

To determine

The question requires us to explain the statement “frictional unemployment always exists.”

Answer 8

a)

Expert Solution

Explanation of Solution

An individual is considered unemployed who is not working, but actively looking for a job.

Frictional unemployment reflects the unemployment that occurs during the time workers spend in a job search. A certain amount of such unemployment is expected always in an economy because job creation and job destruction are constant processes. Few industries hire workers while at the same time few industries fire their workers based on the nature of production, current demand and future expected sales of the product that industry is producing and annual returns of the firms.

So, a certain number of frictionally unemployed workers are expected always in the economy.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

b)

To determine

The question requires us to explain a reason for a larger share of frictional unemployment in total unemployment.

b)

Expert Solution

Explanation of Solution

In an economy, frictional unemployment exists for a certain amount always and this unemployment is generally harmless and may even be beneficial in small amounts. If employees take the time to choose occupations that are ideally matched to their skills, the economy will be more productive, and workers who are temporarily jobless while looking for the ideal position won't suffer greatly. In reality, periods of unemployment tend to be short when the unemployment rate is low, indicating that a large portion of the unemployed is frictional. Workers tend to be unemployed for longer periods during times of higher unemployment, which suggests that a smaller proportion of unemployment is frictional.

Answer 13

b)

To determine

The question requires us to explain a reason for a larger share of frictional unemployment in total unemployment.

Answer 14

b)

Expert Solution

Explanation of Solution

In an economy, frictional unemployment exists for a certain amount always and this unemployment is generally harmless and may even be beneficial in small amounts. If employees take the time to choose occupations that are ideally matched to their skills, the economy will be more productive, and workers who are temporarily jobless while looking for the ideal position won't suffer greatly. In reality, periods of unemployment tend to be short when the unemployment rate is low, indicating that a large portion of the unemployed is frictional. Workers tend to be unemployed for longer periods during times of higher unemployment, which suggests that a smaller proportion of unemployment is frictional.