Chapter 21: Q 18. (page 524)
Are U.S. unemployment rates distributed evenly
across the population?
Short Answer
No, the unemployment rate is not distributed evenly in the US economy.
Chapter 21: Q 18. (page 524)
Are U.S. unemployment rates distributed evenly
across the population?
No, the unemployment rate is not distributed evenly in the US economy.
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Get started for freeIs it desirable to eliminate natural unemployment? Why or why not?
Beginning in the 1970s and continuing for three decades, women entered the U.S. labor force in a big way. If we assume that wages are sticky in a downward direction, but that around 1970 the demand for labor equaled the supply of labor at the current wage rate, what do you imagine happened to the wage rate, employment, and unemployment as a result of increased labor force participation?
As the baby boomer generation retires, what should happen to wages and employment? Can you show this graphically?
A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assuming that wages are flexible, and then assuming that wages are sticky downward.
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 the population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.
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