Chapter 8: Q.10 (page 214)
Are all adults who do not hold jobs counted as unemployed?
No, not all of them will be counted as unemployed
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What forces create the natural rate of
unemployment for an economy?
Whose unemployment rates are commonly higher in the U.S. economy: a. Whites or nonwhites? b. The young or the middle-aged? c. College graduates or high school graduates?
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
Would you expect the natural rate of
unemployment to be roughly the same in different countries?
Do you think it is rational for workers to prefer sticky wages to wage cuts, when the consequence of sticky wages is unemployment for some workers? Why or why not? How do the reasons for sticky wages explained in this section apply to your argument?
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