Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 9, Problem 6RQ
To determine
The country's negative GDP using Okun's law.
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Suppose the number of employed people in an economy 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725. a. What is the size of the labor force? is b. How many people are unemployed? c. What is the size of the working-age population?
Draw a diagram of GDP growth, inflation, and unemployment changing over time during a recession. Explain the timing on unemployment changes. Why might measured unemployment continue to rise after output starts to recover?
How 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 cycle
Chapter 9 Solutions
Macroeconomics
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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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- Why is the unemployment rate never zero, even at full employment? The unemployment rate is never zero, even at full employment, because _______. A. there are always new workers entering the labor market to search for work, workers leaving one job to search for another job, and workers who have been laid off and are searching for another job B. there are always people without jobs because of family responsibilities such as caring for children or elderly parents C. people make lifestyle choices such as early retirement, gap years, and movements from high-stress to low-stress jobs D. cyclical unemployment is always present in the economyarrow_forwardIf the number of employed people equals 185 million, the number of unemployed people equals 15 million, and the number of people in the population aged 16 and older equals 210 million, then a. the unemployment rate equals 7.14% and the labor force participation rate equals 95.2%. a. the unemployment rate equals 7.23% and the labor force participation rate equals 85.7%. a. the unemployment rate equals 7.5% and the labor force participation rate equals 92.9%. a. the unemployment rate equals 7.7% and the labor force participation rate equals 92.9%. a. the unemployment rate equals 7.7% and the labor force participation rate equals 92.9%.arrow_forwardAn economic expansion rather than a recession Occurs A. When the unemployment rate is not changing. B. When the federal budget is balanced. C. When growth in real GDP is positive. D. When the unemployment rate falls below 5 percent.arrow_forward
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