ECON: MACRO4
4th Edition
ISBN: 9781305436862
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 2.5PA
To determine
Full employment,
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
10. Unemployment benefits usually last for 26 weeks; however, the federal government can vote
to extend benefits during times of recession. Extension benefits are entirely federally-funded and
allow unemployed workers to get benefits for a year or more.
Why are the advantages for the economy of extending unemployment benefits? Name three or
more negative effects of unemployment that the government might want to avoid.
9. If 4 million people are unemployed in a county, and the size of the labor force is 25 million
people, what is the unemployment rate?
12
Suppose 20 million people are employed, and 5 million are unemployed. What is the unemployment rate? Does that number change if we also state that there are an additional 30 million people who are not in the civilian labor force?
Knowledge Booster
Similar questions
- Why do you think that unemployment rates are lower for individuals with more education?arrow_forward7arrow_forwardProblem 2. The population of the economy is equal to 100. Forty percent of the population are not in the labor force. Six percent of the population are unemployed. 1. What is the unemployment rate in this economy? 2. Suppose that the number of people out of the labor force is constant, so that all movements in the labor market are between employment and unemployment. The share of the unemployed who find employment is equal to 18% in each period, and the share of the employed who lose their jobs is equal to 2% in each period. According to the bathtub model, what is the natural rate of unemployment? 3. The government considers a law that would raise the cost of firing workers. As a result, the job separation rate is expected to decline to just 1% per period. However, the law makers are worried about a potential side-effect of the policy: firms might become less willing to hire people leading to a decline in the job finding rate. How much should the job finding rate decline in order to…arrow_forward
- 9. _______________________ happens when the economy is producing at its potential and unemployment is at the natural rate of unemployment. (A) The foreign price effect (B) Stagflation (C) Full employment GDP (D) The interest rate effectarrow_forward8 The economy has part time workers of 20 million people, and full time workers of 140 million people. There are 5 million who have no job and search for one. Lastly, 5 million who have no job but stop searching while waiting for a positive mood in the economy. The unemployment rate in the economy is (Your answer should include the first decimal point if there is.) Your Answer: %. Answerarrow_forward32- If there is inflation and high unemployment in an economy, there is X in this economy.” Find the correct expression that replaces X in the sentence. a) national income B) Deflation NS) stagflation D) Inflation TO) full employmentarrow_forward
- 8. The attached charts (Quits: Total Nonfarm) shows the quit rate (the number of who quit their job during the entire month as a percentage of total employment) and the unemployment rate (U-3). (a) All else constant, what effect does an increase in the quit rate have on the unemployment rate? (b) Do you consider job quits as frictional or structural unemployment? Why? (c) What happens to the quit rate during the recession of 2008? Why? Do we see the same effect in the recession of 2020? (d) What happened to the unemployment rate during the recessions of 2008 and 2020? How do you reconcile this answer with your answers for items (a) and (c)? (e) Use your answers to explain why the unemployment rate will never fall to zero and a certain amount of unemployment is desirable.arrow_forwardCongratulations! Your boss has given you a raise. However, you want to know whether your purchasing power has increased, since inflation is also rising. The table below gives you data for wages and the Consumer Price Index (CPI) for the last two years. Wage ($/day) CPI Year 1 $ 2000 CPI 120 Year 2 $2200 CPI 129.6 The nominal percentage increase in your wage is enter your response here%. (Round your answer to one decimal place.) Part 2 The real percentage increase in your wage is enter your response here%. (Round your answer to one decimal place.)arrow_forward• Unemployment • How do economists measure unemployment? Why is unemployment not a perfect measure of joblessness? Visit the Bureau of Labor Statistics website and explore the national unemployment rate section. What is the current level of national unemployment? Has it increased or decreased? Explain why the unemployment rate has changed.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning