Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 5RQ
To determine
The type of unemployment that is consistent with full employment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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?
Explain about solution of unemployment.
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.
Chapter 9 Solutions
Macroeconomics
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
Knowledge Booster
Similar questions
- 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)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_forward5. Potential GDP is 8000. With an actual unemployment rate of 8%, the actual volume of real GDP was 7280. With an increase in the actual unemployment rate to 10%, the actual volume of real GDP fell to 6800. Determine the values of Okun's coefficient and the natural unemployment rate.arrow_forward
- Structural unemployment is the unemployment that arises ____________. A. when wage rigidity creates a persistent gap between labor supply and labor demand. B. from workers' imperfect information about available jobs. C. during recessions when the unemployment rate is above the natural rate. D. from the average of the unemployment rates over an extended period of time.arrow_forwardEach statement listed below describes a type of unemployment. State with reason the type of unemployment in each case. i. Ms. Dipti who just graduated from The Faculty of Business and Management Sciences at the University of Nairobi with a Bachelor of Commerce Degree, is looking for her first real job. ii. Ms. Sumeiya is looking for a job during the current Covid-19 pandemic period in Mombasa yet most hospitality job offering tourist hotels job opportunities have since closed business. iii. Frosty the Snowman is expecting to be out of work shortly following the last big snow of the year. iv. Mr. Vincent Nduva voluntarily quit his job at Disney & has decided that he will seek a job as a truck driver. v. Paul Bunyan lost his job as a lumberjack because the timber company he works for decided to just buy chainsaws. vi. Ms. Zahra Harunani was recently fired from downtown Naivas…arrow_forwarda.) what does unemployment mean economically and explain the types of Unemployment? b.) Explain Zero Unemployment.arrow_forward
- Suppose the non-institutional civilian population in a nation is 120 million, of which 80 million are employed and 10 million are unemployed. From this, the labor force participation rate is ______, and the unemployment rate is ________. Select one: a. 66.7%; 12.5% b. 75%; 11.1% c. 75%; 12.5%arrow_forwardPushparaj completed a technical course in 2021. In the initial stage, he expected a salary of Rs.50,000 p.m. based on his qualifications. Due to the third wave of covid, it was difficult for him to get a job. He decided to work at the prevailing wage rate. But he was unable to find a job in the market. This kind of unemployment can be called as a. Involuntary unemployment b. Voluntary unemployment c. Seasonal unemployment d. Disguised unemploymentarrow_forwardWhich of the following can result in a reduction of unemployment? A. Increased population growth B. Increase in demand for exports C. Reduction in labour intensity of production D. Increased immigration E. Decrease in government spendingarrow_forward
- The rise in unemployment that occurs because of a recessionis known as cyclical unemployment, because it is closely tied to the ______________. a)labor supply b)natural rate ofunemployment c)supply curve d)business cyclearrow_forwardWhen a person is employed in a sector where his/her employment does not make any difference to the output, it signifies the presence of a. Cyclical unemployment b. Frictional unemployment c. Sectoral unemployment d. Disguised unemploymentarrow_forwardWhat 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:arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education