a.Briefly explain two courses of unemployment in the long run. b.Unemployment results from workers who are actively seeking work but cannot find jobs, among others. However,it is often argued that for unemployment to prevail there must be wage rigidity.Why and how does wage rigidity arise?

a.Briefly explain two courses of unemployment in the long run. b.Unemployment results from workers who are actively seeking work but cannot find jobs, among others. However,it is often argued that for unemployment to prevail there must be wage rigidity.Why and how does wage rigidity arise?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section: Chapter Questions

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Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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