MACROECONOMICS W/CONNECT
MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Chapter 9, Problem 5RQ
To determine

The type of unemployment that is consistent with full employment.

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In 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?
In April approx. 22 million people filed for unemployment ins. In March, the labor force was  162,913,000 with employment=155,772,000 and unemployed=7,140,000. (please answer part D) A. What would April's unemployment rate be approximately? 4.38% B. If unemployment is around 4% and from Okuns law approximately for every 1% point change in unemployment, GDP falls 2%, how much has GDP dropped in % terms? 8% C. If real GDP in March was $19,221.970 billion ($19.22 trillion), what is the drop in dollar value of production? $1,537,677,600,000 D. If JDL Forcasting announced that they predict the mpc has fallen to 0.5, how much government spending will need to be injected to get back to Unemployement(natural rate of unemployement where actual and potential output are back to long-run levels)
Each statement listed below describes a type of unemployment. State with reason the type of unemployment in each case i)    Mr. Vincent Nduva voluntarily quit his job at Disney & has decided that he will seek a job as a truck driver.  ii)    Paul Bunyan lost his job as a lumberjack because the timber company he works for decided to just buy chainsaws.                 iii)     Ms. Zahra Harunani was recently fired from downtown Naivas Supermarket in Mwembe Tayari Mombasa because she is being replaced by Robocop, a highly efficient robot with ability to restock the shelves on the shop floor.               iv)    The Easter Bunny found out that he was being let go, since Americans have decided to not eat eggs, which are high in cholesterol.
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