Chapter 8: Q2. (page 311)
What is the likely effect of such services on the number of people considered to be in the labor force?
Services such as TaskRabbit will increase the labor force since it will reduce frictional unemployment.
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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?
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.
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?
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.
The widespread use of technology has revolutionized the banking industry, making it much easier for customers to access and manage their assets. Does this mean that the shoe-leather costs of inflation are higher or lower than they used to be?
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