Chapter 7: Problem 27
What is structural unemployment? Give examples of structural unemployment.
Short Answer
Step by step solution
Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Chapter 7: Problem 27
What is structural unemployment? Give examples of structural unemployment.
These are the key concepts you need to understand to accurately answer the question.
All the tools & learning materials you need for study success - in one app.
Get started for freeUnemployment 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.
What forces create the natural rate of unemployment for an economy?
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. What's 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.
While unemployment is highly negatively 35. While 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?
Would you expect the natural rate of unemployment to remain the same within one country over the long run of several decades?
What do you think about this solution?
We value your feedback to improve our textbook solutions.