Chapter 8: "Q.19" (page 214)
When would you expect cyclical unemployment to be rising? Falling?
Short Answer
Increase during recession and fall during expansion.
Chapter 8: "Q.19" (page 214)
When would you expect cyclical unemployment to be rising? Falling?
Increase during recession and fall during expansion.
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Get started for freeAre all adults who do not hold jobs counted as unemployed?
A country with a population of eight million adults
has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. Whatโs the unemployment rate? What share of population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.
What are some of the problems with using the unemployment rate as an accurate measure of overall joblessness?
Is it desirable to pursue a goal of zero
unemployment? Why or why not?
Assess whether the following would be counted as โunemployedโ in the Current Employment Statistics survey.
a. A husband willingly stays home with children while his wife works.
b. A manufacturing worker whose factory just closed down.
c. A college student doing an unpaid summer internship.
d. A retiree.
e. Someone who has been out of work for two years but keeps looking for a job.
f. Someone who has been out of work for two months but isnโt looking for a job.
g. Someone who hates her present job and is actively looking for another one.
h. Someone who decides to take a part time job because she could not find a full time position.
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