Chapter 21: Q. 7 (page 523)
Many college students graduate from college before they have found a job. When graduates begin to look for a job, they are counted as what category of unemployed?
Frictionally unemployed.
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Under what condition would a decrease in
unemployment be bad for the economy?
Unemployment rates have been higher in many European countries in recent decades than in the United States. Is the main reason for this long-term difference in unemployment rates more likely to be cyclical unemployment or the natural rate of unemployment? Explain briefly.
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?
Is it desirable to eliminate natural unemployment? Why or why not?
Using the definition of the unemployment rate, is an increase in the unemployment rate necessarily a bad thing for a nation?
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