🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
104
views

Which of the following would increase the natural rate of unemployment?

   

a. an increase in the number of younger, less skilled workers in the economy
   

b. a reduction in the generosity of unemployment insurance programs
   

c. restrictions on the ability of unions to negotiate wage changes with companies
   

d. an increase in government-sponsored programs that train unemployed workers so they can find new jobs quickly

Watch
1
answer
0
watching
104
views

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

Anne Gillian Duero
Anne Gillian DueroLv10
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Changes in economic policies will frequently have an impact on the unemployment rate. Explain whether each of the policy changes described is likely to affect frictional or structural unemployment and increase or decrease the measured unemployment rate.

a) The government reduces the number of weeks of unemployment insurance that unemployed workers can receive;

b) The government raises the minimum wage;

c) The government increases spending on job-training programs.

Sectoral shifts, frictional unemployment, and job searches

Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will ................ The demand for labor among textile-producing firms in South Carolina for which cotton is an input, will............. ·The temporary unemployment resulting from such sectoral shifts in the economy is best described as ...............unemployment.

Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.

1. Establishing government-run employment agencies to connect unemployed workers to job vacancies

2. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks

3. Increasing the benefits offered to unemployed workers through the government's unemployment insurance program

Consider a hypothetical economy in which the labour force consists of 100 people. Of those, 85 people are employed full time and 15 people are unemployed. The government of this economy follows the same conventions as the BLS in computing its employment figures. The unemployment rate is simply the number of unemployed people divided by the number of people in the labour force. Initially, then, the unemployment rate is (15/100) x 100% = 15.0%
 
Suppose a reduction in foreign demand for this economy's products causes an economic recession-a prolonged period of declining output. The following table offers two different possible scenarios resulting from the recession. Calculate the unemployment rate associated with each scenario
 
2. Firms reduce work hours by 25%. The number of underemployed workers rises as firms respond to the reduction in the demand for their products by reducing the hours of each employed person from 40 to 30 hours per week.
 
A. 36.0%
B. 56.3%
C. 15.0%
D. 17.6%
 
3. Firms reduce employment by 25%. The number of unemployed workers rises as firms respond to the reduction in the demand for their products by laying off 21 previously employed workers.
 
A. 15.0%
B. 36.0%
C. 56.3%
D. 17.6%
 
4. The unemployment rate in scenario 3 ____ the true extent of underemployment in the economy because the BLS counts part-time workers as employed.
 
A. Overstates
B. Understates
 
5. Consider a hypothetical economy in which potential output is $400 billion and the natural rate of unemployment is 6%. The current employment rate is 7.4%. Since the unemployment rate is greater than the natural rate of unemployment, the economy's actual GDP will be ____ potential GDP.
 
A. Less than
B. Greater than
C. Equal to
 
6. The burden of an increase in the economy-wide unemployment rate can differ widely across regions and different groups of people. For example, in the United States, the jobless rate among minorities has tended to be ___ than the jobless rate among whites.
 
A. Lower
B. Higher

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in