Chapter 21: Q 25. (page 524)
Would you expect the natural rate of unemployment to remain the same within one country over the long run of several decades?
Short Answer
Generally, it will remain the same but have some exceptions.
Chapter 21: Q 25. (page 524)
Would you expect the natural rate of unemployment to remain the same within one country over the long run of several decades?
Generally, it will remain the same but have some exceptions.
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As the baby boom generation retires, the ratio of retirees to workers will increase noticeably. How will this affect the Social Security program? How will this affect the standard of living of the average American?
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.
Would you expect the natural rate of unemployment to be roughly the same in different countries?
After several years of economic growth, would you expect the unemployment in an economy to be mainly cyclical or mainly due to the natural rate of unemployment? Why?
Is it desirable to pursue a goal of zero unemployment? Why or why not?
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