Write a summary for each with great details and examples

8.1 How the Unemployment Rate is Defined and Computed

8.2 Patterns of Unemployment

8.3 What Causes Changes in Unemployment over the Short Run

8.4 What Causes Changes in Unemployment over the Long Run

answer

watching

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Chika IlonahLv10

29 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

Cyclical unemployment is closely associated with

a. long-term economic growth.

b. short-run ups and downs of the economy.

c. fluctuations in the natural rate of unemployment.

d. changes in the minimum wage.

viridiankoala364

The natural rate of unemployment is 6%

(a) Suppose the short-run output over the next four years is falling and is at the levels of +2%, +1%, 0%, and -1%. According to Okun's law, what unemployment rates should we expect to see in this economy?

(b) Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. Use Okun's law to solve for the levels of short-run output, Y, expected in each year.

maroonmink389

The answer is:

Okun's law refers to the negative relationship that exists between unemployment and real GDP. Okun's law can be summarized by the equation: in real GDP = 3% - 2 x [% in unemployment rate]. That is output moves in the opposite direction from unemployment, with a ratio of 2 to 1. In the short-run, when Y falls 5 percent, unemployment increases 2-1/2 percent. In the long-run, both output and unemployment return to their natural rate levels. Thus, there is no long-run change in unemployment.

I don't get it. Please help, thanks.