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.
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?
Suppose the adult population over the age of 16 is 237.8 million and the labor force is 153.9 million (of whom 139.1 million are employed). How many people are “not in the labor force?” What are the proportions of employed, unemployed and not in the labor force in the population? Hint: Proportions are percentages.
What is structural unemployment? Give examples of structural unemployment.
What term describes the remaining level of unemployment that occurs even when the economy is healthy?
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?
What do you think about this solution?
We value your feedback to improve our textbook solutions.
