Chapter 21: Q. 39 (page 525)
Under what condition would an increase in the unemployment rate be a positive sign?
An increase in the unemployment rate will be a positive sign when the discouraged workers start looking for work again.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Why is there unemployment in a labor market with
flexible wages?
As the baby boomer generation retires, what should happen to wages and employment? Can you show this graphically?
Beginning in the 1970s and continuing for three decades, women entered the U.S. labor force in a big way. If we assume that wages are sticky in a downward direction, but that around 1970 the demand for labor equaled the supply of labor at the current wage rate, what do you imagine happened to the wage rate, employment, and unemployment as a result of increased labor force participation?
Are all adults who do not hold jobs counted as unemployed?
Assess whether the following would be counted as “unemployed” in the Current Employment Statistics survey.
a. A husband willingly stays home with children while his wife works.
b. A manufacturing worker whose factory just closed down.
c. A college student doing an unpaid summer internship.
d. A retiree.
e. Someone who has been out of work for two years but keeps looking for a job.
f. Someone who has been out of work for two months but isn’t looking for a job.
g. Someone who hates her present job and is
actively looking for another one.
h. Someone who decides to take a part-time job because she could not find a full-time position.
What do you think about this solution?
We value your feedback to improve our textbook solutions.
