Suppose the Parliament passes legislation making it more difficult for firms to fire workers (an example is a law requiring severance pay to fired workers).  If this legislation reduces the rate of job separation without affecting the rate of job finding, how would the natural rate of unemployment change? Do you think that it is plausible that legislation would not affect the rate of job finding?

Q: What exactly is the natural rate of unemployment?

A: # Let's first understand what's unemployment is.  Unemployment is a situation whereby a person who…

Q: Suppose that the natural rate of unemployment is 5% and the actual rate of unemployment is 5%.…

A: Cyclical unemployment is the component of overall unemployment that results directly from cycles of…

Q: Frictional unemployment exists because of the time it takes for workers to search for the jobs that…

A: Unemployment exists when a worker who is willing and able to work is unable to find a suitable job.…

Q: U.S. population is 328 million people 70 million individuals are legally classified as unable to…

A:

Q: The duration of unemployment tends to rise when

A: The duration of unemployment tends to rise when there are few jobs to go around. The few economic…

Q: Suppose an economist estimates, in Country X, the job separation rate be 4 percent while the job…

A: The natural rate of unemployment is that type of unemployment which exists when there is full…

Q: How do you calculate the natural unemployment rate

A: The natural rate of unemployment is the unemployment rate that existing in an economy even when the…

Q: Suppose a govemment report about a country's employment situation reveals the following data (all…

A: Unemployment is the level where person want to work and have skill but dont have work and labor…

Q: Frictional unemployment is inevitable simply because the economy is always changing.” Do you agree…

A: Unemployment occurs in economics when people are out of work while actively looking for work. The…

Q: What is frictional unemployment

A: Unemployment is a situation in which a person who is willing and able (capable) to work do not find…

Q: How does structural unemployment differ from frictional unemployment?

A: Structural unemployment: Structural unemployment refers to the unemployment that occurs due to the…

Q: Suppose the National Assembly passes legislation making it more difficult for firms to fire workers.…

A: The labor market consists of labor demand by businesses and labor supply by households. The point…

Q: Explain whether below events increases, decreases, or has no effect on the unemployment rate and the…

A: Unemployment rate (UR) = Number unemployed / Labor force (LF) labor force participation rate (LFPR)…

Q: Which of the following pictures best describes the impact on the labor market of a reduction of the…

A: Unemployment benefit is a kind of insurance that is paid by the government to people who have lost…

Q: How can unions result in higher unemployment rates? How would the results differ for someone who…

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Q: What is meant by the full employment or the natural rate of unemployment? Which type of unemployment…

A: In an economy, unemployment refers to the situation when labor supplied exceeds labor demand in the…

Q: According to the Bathtub labor market model, if unemployment rate is now at 12%, the separation rate…

A: Bathtub model presents an analogy between unemployment rate and a the amount of water bathtub.…

Q: The following table shows Metropolis' population and employment data. What is the approximate…

A: The unemployment rate in the economy is one of the important factors which shows the health of an…

Q: Distinguish unemployment from the natural rate of unemployment.

A: Unemployment is a situation of a person who is actively looking for a job but unable to find a…

Q: calculate the unemployment rate: Total adult population over the age of 16 83 million Total in the…

A: Formula for calculation of unemployment rate: Unemployment rate = (Total unemployed population /…

Q: What is the meaning of cyclical unemployment?.  Is this type of unemployment counted as part of…

A: In an economy, unemployment is classified into different types such as cyclical, frictional,…

Q: QUESTION 7 Which of the following pictures best describes the impact on the labor market of an…

A: Unemployment insurance benefits that are more generous improve the functioning of the labour market…

Q: What determines the nature rate of unemployment

A: The minimal rate of unemployment induced by genuine or intentional market pressures is known as the…

Q: Would you expect hidden unemployment to be higher, lower, or about the same when the unemployment…

A: Hidden unemployment includes those individuals people who are either underemployed or are…

Q: How can seasonal unemployment be alleviated? Should it be alleviated? Why or why not?

A: Seasonal unemployment means a situation when individuals are not having jobs(unemployed) at…

Q: When we calculate the unemployment rate we divide the adult population between the labor force and…

A: Unemployment refers to the situation where the person is willing and able to work but unable to find…

Q: If some employed workers exit the labor force, the unemployment rate will be ______

A: The unemployment rate is a portion of the unemployed of the labor force. The labor force is a sum of…

Q: Suppose the Parliament passes legislation making it more difficult for firms to fire workers (an…

A: Unemployment refers to the situation where an individual who does not have a job, who is actively…

Q: Determine the impact on each of the following four variables if 3 million formerly unemployed…

A: MACRO ECONOMICS- Macro economics is concerned with the problem of the economy at an aggregate level,…

Q: Through the basic equation of the labor market (L = E + U), prove that in a steady state the open…

A: Labor market basic equation  L=E+U Here L=No. of workers in the labor force E=No. of employed…

Q: Discuss the view that the best way to reduce unemployment is through education and training

A: The two important factors in market are demand and supply. Demand as well as supply depend on…

Q: List and define the three types of unemployment. And give an example of each of them. What is the…

A: 1) Definition: Unemployment occurs when a person who is actively searching for employment unable to…

Q: What are the solution for unemployment

A: U {"unemployment"} is the situation that occurs to the individuals when they are willing to work in…

Q: Under what condition would an increase in the unemployment rate be a positive sign?

A: Answer: Frictional unemployment is a temporary phenomenon, which is caused due to cyclical economic…

Q: Why is the optimal rate of unemployment, from an economic perspective, never zero?

A: Answer: The optimal rate of unemployment or natural rate of unemployment refers to the rate of…

Q: While unemployment is highly negatively correlated with the level of economic activity, in the real…

A: Unemployment is the situation in which the individuals are ready to do work but they are unable to…

Q: Whats a possible explanation for the variations in unemployment over time and the variation in…

A: Unemployment: The situation when a capable person is willing to work and searching for a job but was…

Q: Unemployment rates have been higher in many European countries in recent decades than in the United…

A: Unemployment is the situation when people actively searching for work but unable to find the work.…

Q: In a model of unemployment, if the job finding is 0.10 and the job separation rate is 0.05, how long…

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Q: What is the difference between Cyclical Unemployment, Structural Unemployment and Frictional…

A: Structural unemployment - This type of unemployment occurs when there is mismatch of workers skills…