Chapter 8: Q 24 (page 214)
Would you expect the natural rate of
unemployment to be roughly the same in different countries?
Short Answer
No, the natural rate of unemployment cannot be roughly same in two different countries.
Chapter 8: Q 24 (page 214)
Would you expect the natural rate of
unemployment to be roughly the same in different countries?
No, the natural rate of unemployment cannot be roughly same in two different countries.
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Get started for freeUsing the above data, what is the unemployment rate? These data are U.S. statistics from 2010. How does it compare to the February 2015 unemployment rate computed earlier?
If you are out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greeter at Wal-Mart are you considered employed or not in the labor force?
Over the long term, has the U.S. unemployment rate generally trended up, trended down, or remained at basically the same level?
What happens to the unemployment rate when unemployed workers are reclassified as discouraged workers?
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?
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