Chapter 8: Q.8 (page 214)
What is the difference between being unemployed and being out of the labor force?
Unemployed means able and willing to work but no job. Out of labor force means not willing to work.
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Why do you think that unemployment rates are lower for individuals with more education?
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.
Would you expect hidden unemployment to be higher, lower, or about the same when the unemployment rate is high, say 10%, versus low, say 4%? Explain.
What happens to the unemployment rate when unemployed workers are reclassified as discouraged workers?
What type of unemployment (cyclical, frictional,
or structural) applies to each of the following:
a. landscapers laid off in response to a drop in new housing construction during a recession.
b. coal miners laid off due to EPA regulations that shut down coal fired power
c. a financial analyst who quits his/her job in
Chicago and is pursing similar work in Arizona
d. printers laid off due to drop in demand for printed catalogues and flyers as firms go the internet to promote an advertise their products.
e. factory workers in the U.S. laid off as the plants shut down and move to Mexico and Ireland.
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