Solve it correctly and don't copy. I need non plagiarised answer. 2. Suppose you read the news that the unemployment rate increased from 5.8% to 6.7% andat the same time the labor force participation rate increased from 60% to 62%.Could it be a good sign or bad sign for the economyab. Explain why you think so. What could be happening in the economy?

An increase in the unemployment rate is a major problem for any economy. A person is considered to…

Answered: Suppose you read the news that the…

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Unemployment

Section15.1: Ldentifyinr Unemployment

Problem 1QQ

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Whose unemployment rates are commonly higher in the U.S. economy: Whites or nonwhites? The young or the middle-aged? College graduates or high school graduates?
15. Suppose the number of employed people in an economy is 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. &. What is the size of the labor force? b. How many people are unemployed? s What is the size of the working-age population? toTTATR
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 economy
When the labour market is in equilibrium, it means that the number of jobs in the economy is equal to the number of people willing and able to work (the labour force). Why it then that there will always be unemployment in the economy, even when the labour market is in equilibrium (even when there is a job for everyone)?” Discuss
6. During the first three months of 2009, the number of American workers counted by the Bureau of Labor Statistics (BLS) as being employed decreased by 2,451,000 (that is, by almost 2 1/2 million) yet, over the same period, the number of American workers counted by the BLS as being unemployed increased by only 2,053,000 (that is, by just a little more than 2 million). a. Explain briefly (no more than a sentence or two) how these two numbers can be consistent with one another. b. In light of the two statistics given above, would you say that the rise in the unemployment rate from 7.2 percent to 8.5 percent during the first three months of 2009 overstates or understates the severity of the recession as felt by US workers?
Tim Hortons paid its line workers $12 per hour last year when the Consumer Price Index was 100. Suppose over the past year, deflation occurred and the aggregate price level fell to 90. Instructions: Round your answers to two decimal places. a. Tim Hortons must pay its workers $ ]this year in order to keep the real wage fixed at $12. b. Tim Hortons must pay its workers $ |this year if it wants to increase the real wage by 12 percent. c. If Tim Hortons keeps the wage fixed at $12 per hour, in real terms, its workers get a % increase in wages.
6. "You mi ght as well say that the unemployment rate would be zero if everyone just quit looking for work." Explain what the author means by this.
16. Which of the following is an example of someone who has been frictionally unemployed? a.A worker who has been laid off due to the economic slowdown b.A teacher on her summer holidays c.A person who cannot find a job because of the seasonal variation d.An engineer who quits his job
What is natural rate of unemployment? When do we say an economy has full employment? 2. Identify what type of unemployment will result from the following scenarios a. Jane has completed college and quit her job at Tim Horton so she can work full-time in her marketing field: b. The clothing store George used to work for was shut down as the clothing brand is now selling all its collection through its online website: c.The business Hank was working for had to shut down as there has been a decrease in overall demand in the economy:
Recovery won't improve unemployment Despite some optimism about the seeds of recovery, the Congressional Budget Office (CBO) sees joblessness rising. The CBO sees unemployment peaking at 10.4% next year from an average of 9.3% this year, before it falls to 9.1% in 2011. Source: Fortune, August 25, 2009 Why does unemployment continue to rise as an expansion begins? O A. In the early stages of an expansion, the labor force decreases. B. As an expansion begins, previously marginally attached workers look for jobs, exceeding the number of people hired. C. In the early stages of an expansion, unemployment increases as firms lay off workers in an attempt to cut costs. D. The unemployment rate is a leading indicator of the business cycle, so unemployment continues to rise as an expansion begins. Next
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Suppose you read the news that the unemployment rate increased from 5.8% to 6.7% and at the same time the labor force participation rate increased from 60% to 62%. a Could it be a good sign or bad sign for the economy D. Explain why you think so. What could be happening in the economy?