The likely effect of the breakdown of the job-for-life system in Japan on the Japanese natural rate of unemployment . Concept Introduction: Unemployment Rate: Unemployment rate refers to the measure of the total unemployed population, voluntarily or involuntarily, within the given area out of the total existing population. Types of Unemployment: There are three types of unemployment as given below: Cyclical Unemployment: When the economy faces recession, many people lose their jobs and face unemployment and when the recession period is over, people get back to their jobs. This cycle is known as cyclic unemployment. Structural Unemployment: With the change in time, the demand for some skills increases in the employees. When the demand for a specific skill increases, the people who do not possess that skill get unemployed. This is known as structural unemployment. Frictional Unemployment: Sometimes, people may be voluntarily out of job due to reasons like, looking for better opportunities or moving to a new location. This is referred to as frictional unemployment. Natural Rate of Unemployment: It refers to that rate of unemployment which is minimum and persists in the economy at all times. It includes frictional as well as structural unemployment. Gross Domestic Product : It refers to the gross money value or gross market value of all finished goods and the services produced by the normal resident and non-resident people of the country that is within the borders of the country in an accounting period.

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 8P

To determine

The likely effect of the breakdown of the job-for-life system in Japan on the Japanese natural rate of unemployment.

Concept Introduction:

Unemployment Rate: Unemployment rate refers to the measure of the total unemployed population, voluntarily or involuntarily, within the given area out of the total existing population.

Types of Unemployment: There are three types of unemployment as given below:

Cyclical Unemployment: When the economy faces recession, many people lose their jobs and face unemployment and when the recession period is over, people get back to their jobs. This cycle is known as cyclic unemployment.

Structural Unemployment: With the change in time, the demand for some skills increases in the employees. When the demand for a specific skill increases, the people who do not possess that skill get unemployed. This is known as structural unemployment.

Frictional Unemployment: Sometimes, people may be voluntarily out of job due to reasons like, looking for better opportunities or moving to a new location. This is referred to as frictional unemployment.

Natural Rate of Unemployment: It refers to that rate of unemployment which is minimum and persists in the economy at all times. It includes frictional as well as structural unemployment.

Gross Domestic Product: It refers to the gross money value or gross market value of all finished goods and the services produced by the normal resident and non-resident people of the country that is within the borders of the country in an accounting period.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

After the ban is imposed, Joe’s firm switches to the more expensive biodegradable disposable cups. This increases the cost associated with each cup of coffee it produces. Which cost curve(s) will be impacted by the use of the more expensive biodegradable disposable cups? Why? Which cost curve(s) will not shift, and why not? Please use the table below to answer this question. For the second column (“Impacted? If so, how?”), please use one of the following three choices: No shift; Shifts up (i.e., increases: at nearly any given quantity, the cost goes up); or Shifts down (i.e., decreases: at nearly any given quantity, the cost goes down). $ Cost Curve Impacted? If so, how? Explanation of the Shift: Why or Why Not AFC No shift. Fix costs stay the same, regardless of quantity. Fixed cost is calculated as Fixed Cost/Quantity. Since fixed costs remain unchanged, AFC stays the same for each quantity. MC Shifts up. Since the biodegradable cups are more expensive, the…

Styrofoam is non-biodegradable and is not easily recyclable. Many cities and at least one state have enacted laws that ban the use of polystyrene containers. These locales understand that banning these containers will force many businesses to turn to other more expensive forms of packaging and cups, but argue the ban is environmentally important. Shane owns a firm with a conventional production function resulting in U-shaped ATC, AVC, and MC curves. Shane's business sells takeout food and drinks that are currently packaged in styrofoam containers and cups. Graph the short-run AFC0, AVC0, ATC0, and MC0 curves for Shane's firm before the ban on using styrofoam containers.

d-f