Chapter 8: Q1. (page 311)
How is the matching of job-seekers and employers through services like TaskRabbit likely to affect frictional unemployment?
The matching of job-seekers and employers through services like TaskRabbit reduces the time spent by people looking for a job, thereby reducing frictional unemployment.
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Most people in the United States have grown accustomed to a modest inflation rate of around 2% to3%. Who would gain and who would lose if inflation unexpectedly came to a complete stop over the next 15 or 20 years?
Some analysts suggest that most freelancers have other jobs, and only do gig economy work on the side. How does that statement help explain the lack of clear evidence for a growing gig economy?
Explain the following statements.
a. Frictional unemployment is higher when the pace of technological advance quickens.
b. Structural unemployment is higher when the pace of technological advances quickens.
c. Frictional unemployment accounts for a larger share of total unemployment when the unemployment rate is low.
Suppose that at the peak of the business cycle the United States dramatically increases benefits for unemployed workers. Explain what will happen to the natural rate of unemployment.
Which of the following are consistent with the observed relationship between growth in real GDP and changes in the unemployment rate as shown in Figure 8-5? Which are not?
a. A rise in the unemployment rate accompanies a fall in real GDP.
b. An exceptionally strong business recovery is associated with a greater percentage of the labor force being employed.
c. Negative real GDP growth is associated with a fall in the unemployment rate.
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