Chapter 21: Q. 42 (page 525)
Is it desirable to pursue a goal of zero unemployment? Why or why not?
Zero unemployment is not desirable for the country because it means that there is no growth of economic growth.
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Would you expect hidden unemployment to be higher, lower, or about the same when the unemployment rate is high, say , versus low, say ? Explain.
Are all adults who do not hold jobs counted as unemployed?
Is the higher unemployment rates for minority workers necessarily an indication of discrimination? What could be some other reasons for the higher unemployment rate?
A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assuming that wages are flexible, and then assuming that wages are sticky downward.
After 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?
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