MACROECONOMICS (LL)
21st Edition
ISBN: 9781260186949
Author: McConnell
Publisher: MCG
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Question
Chapter 9, Problem 5RQ
To determine
The type of unemployment that is consistent with full employment.
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Students have asked these similar questions
Suppose there are 50 million persons in the population, 25 million persons in the civilian labor force, and 20 million persons are employed. The number of people unemployed is _______ million and the unemployment rate is ___________ percent.
Please choose correct option-
A. 25; 50
B. 5; 10
C. 5; 20
D. 10; 10
Suppose that the current GDP is 6% higher than its potential. What is the effect of this situation on the rate of unemployment as compared to its natural rate? If the natural rate of unemployment is 6%, what is the total unemployment rate as well as the cyclical unemployment? Show your work
What type of unemployment might older workers be more prone to experience? Explain how the unemployment rate of older workers is influenced by the business cycle.
Older workers are more prone to experience _______ unemployment. During a recession, the unemployment rate of older workers _______.
A.
structural; decreases
B.
natural; remains constant
C.
structural; increases
D.
frictional; decreases
Chapter 9 Solutions
MACROECONOMICS (LL)
Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Prob. 11DQCh. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8P
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Similar questions
- The U.S. unemployment rate increased from 4.6 in July 2001 to 5.9 by June 2002. Without studying the subject in any detail, would you expect that a change of this kind is more likely to be due to cyclical unemployment or a change in the natural rate of unemployment? My?arrow_forwardHow does the unemployment rate behave over the business cycle? The unemployment rate _______. A. remains relatively constant over the business cycle at an average of 5.7 percent B. equals 10 percent during a recession and falls to zero during an expansion C. rises during a recession and falls during an expansion D. equals 100 minus the employment-population ratio over the business cyclearrow_forwardA country's structural unemployment rate is 4.2%, the natural unemployment rate is 5.6%, and the cyclical unemployment rate is 6.7%. Calculate the frictional unemployment rate and the unemployment rate.arrow_forward
- (Measuring Unemployment) Suppose that the U.S. noninstitutional adult population is 230 million and the labor force participation rate is 67 percent. a. What would be the size of the U.S. labor force? b. If 85 million adults are not working, what is the unemployment rate?arrow_forwardThe natural rate of unemployment is 6%, and the actual unemployment rate is 9%, Okun's coefficient for this country is 3. If the potential GDP this year is 1600 billion Euros, what amount of output was lost due to unemployment?arrow_forwardIn a country with a labor force of 200, a different group of 10 people becomes unemployed each month but becomes employed once again a month later. No others outside these groups are unemployed. EXPLAIN YOUR ANSWER!a. What is this country’s unemployment rate?b. What is the average duration of unemployment?c. Suppose that establishment of a system of unemployment compensation increases to twomonths the interval that it takes each group of job losers to become employed each month. Nevertheless, a different group of 10 people still becomes unemployed each month. Now what is the average duration of unemployment?d. Following the change discussed in part (c), what is the country’s unemployment rate?arrow_forward
- A.) Okun's law is stated as... Change in the Unemployment Rate = -0.2*(Percent Change in Real GDP - 2.5) ... Then what is the expected annual growth rate of GDP? B.)Change in the Unemployment Rate = -0.2*(Percent Change in Real GDP - 2.5) ... If the percent change in GDP is 3%, and the unemployment rate starts at 5%, what is the change in the unemployment rate?arrow_forwardDuring a recession, the Part 2 A. cyclical rate of unemployment is positive. B. cyclical rate of unemployment is negative. C. cyclical rate of unemployment is zero. D. natural rate of unemployment has fallen.arrow_forward4 Out of 20 million people in the population, 9 million people are in the labour force and 3 million are unemployed, therefore the unemployment rate is:(1) 3 percent. (2) 15 percent. (3) 30 percent. (4) 33,3 percent.arrow_forward
- Q.1.4 Out of 20 million people in the population, 9 million people are in the labour forceand 3 million are unemployed, therefore the unemployment rate is: choose the correct answer(2)(a) 3 percent. (b) 15 percent. (c) 30 percent. (d) 33,3 percent.arrow_forwardIf the actual rate of unemployment were 4.2%, while the natural rate of unemployment were 4.8%, what would the cyclical rate of unemployment be? Group of answer choices a) – 4.5% b) 0.4% c) 10% d) – 0.6% e) 4.5%arrow_forwardThe goal of studying and recording the unemployment rate is to learn something about the state of the economy. Explain why each of the following makes the unemployment rate a better or worse indicator of how healthy the economy is. A. If people in the military aren't included in the labor force, does the unemployment rate become a better or worse indicator of the state of the economy? B. If discouraged workers aren't counted in the labor force, does the unemployment rate become a better or worse indicator of the state of the economy?arrow_forward
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