Chapter 21: Problem 4
Whose unemployment rates are commonly higher in the U.S. economy: a. Whites or nonwhites? b. The young or the middle-aged? c. College graduates or high school graduates?
Chapter 21: Problem 4
Whose unemployment rates are commonly higher in the U.S. economy: a. Whites or nonwhites? b. The young or the middle-aged? c. College graduates or high school graduates?
All the tools & learning materials you need for study success - in one app.
Get started for freeAfter several years of economic growth, would you expect the unemployment in an economy to be mainly cyclical or mainly due to the natural rate of unemployment? Why?
What forces create the natural rate of unemployment for an economy?
Would you expect hidden unemployment to be higher, lower, or about the same when the unemployment rate is high, say \(10 \%,\) versus low, say 4\%? Explain.
While unemployment is highly negatively correlated with the level of economic activity, in the real world it responds with a lag. In other words, firms do not immediately lay off workers in response to a sales decline. They wait a while before responding. Similarly, firms do not immediately hire workers when sales pick up. What do you think accounts for the lag in response time?
Are all adults who do not hold jobs counted as unemployed?
What do you think about this solution?
We value your feedback to improve our textbook solutions.