frictional or structural unemployment and increase or decrease the measured natural rate of unemployment.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter21: Unemployment
Section: Chapter Questions
Problem 5SCQ: Beginning in the 1970s and continuing for three decades, women entered the U.S. labor force in a big...
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Explain whether each of the following changes in the composition of the labor force is likely to
affect frictional or structural unemployment and increase or decrease the measured natural rate of
unemployment.
(a) A “baby boom” causes an increase in the share of young workers (age 16–24) as a percentage
of the labor force. 
(b) A loosening of federal restrictions on eligibility for disability benefits leads to an increase in
the number of people receiving disability payments

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