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Chapter 21: Q. 39 (page 525)

Under what condition would an increase in the unemployment rate be a positive sign?

Short Answer

Expert verified

An increase in the unemployment rate will be a positive sign when the discouraged workers start looking for work again.

Step by step solution

01

Step 1. Unemployment Rate.

The unemployment rate is the percentage of adults who are able to work and are willing to work, and actively looking for work but are not able to find a job.

02

Step 2. Increase in Unemployment Rate.

An increase in the unemployment rate will be a positive sign when the discouraged workers start looking for work again. Re-entering of discouraged workers is a positive sign as it shows that more jobs are available for workers.

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Most popular questions from this chapter

What forces create the natural rate of unemployment for an economy?

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Over the long term, has the U.S. unemployment rate generally trended up, trended down, or remained at basically the same level?

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