Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 28, Problem 8PA
Subpart (a):
To determine
Case of Structural unemployment .
Subpart (b):
To determine
Case of Structural unemployment.
Subpart (c):
To determine
Case of Structural unemployment.
Subpart (d):
To determine
Case of Structural unemployment.
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Economists use labor-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed). Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?
Situations
unemployment rate
employment–population ratio
More meaningful one
a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs
b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs.
c. Numerous students graduate from college but cannot find work.
d. Numerous students graduate from college and immediately begin new jobs.
e. A stock market boom induces newly enriched 60-year-old workers to take early retirement.…
Economists use labor-market data to evaluate how well an economy is using its most valuable resource—its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed).
Indicate what happens to the unemployment rate and the employment–population ratio in each of the following scenarios.
Scenario
Effect On...
Unemployment Rate
Employment–Population Ratio
An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. After an unsuccessful search, some laid-off workers quit looking for new jobs. Numerous students graduate from college and immediately begin new jobs. Advances in health care prolong the lives of many retirees.
Economists use labour-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?
a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs.
b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs.
c. Numerous students graduate from college but cannot find work.
d. Numerous students graduate from college and immediately begin new jobs.
e. A stock market boom induces newly enriched 60-year-old workers to take early retirement.
f. Advances in healthcare prolong the life of many retirees
Chapter 28 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 28.1 - Prob. 1QQCh. 28.2 - Prob. 2QQCh. 28.3 - Prob. 3QQCh. 28.4 - Prob. 4QQCh. 28.5 - Prob. 5QQCh. 28 - Prob. 1QRCh. 28 - Prob. 2QRCh. 28 - Prob. 3QRCh. 28 - Prob. 4QRCh. 28 - Prob. 5QR
Ch. 28 - Prob. 6QRCh. 28 - Prob. 7QRCh. 28 - Prob. 1QCMCCh. 28 - Using the numbers in the preceding question, what...Ch. 28 - Prob. 3QCMCCh. 28 - Prob. 4QCMCCh. 28 - Prob. 5QCMCCh. 28 - Prob. 6QCMCCh. 28 - Prob. 1PACh. 28 - Prob. 3PACh. 28 - Prob. 4PACh. 28 - Prob. 5PACh. 28 - Prob. 6PACh. 28 - Prob. 7PACh. 28 - Prob. 8PACh. 28 - Prob. 9PA
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