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Chapter 21: Q. 42 (page 525)

Is it desirable to pursue a goal of zero unemployment? Why or why not?

Short Answer

Expert verified

Zero unemployment is not desirable for the country because it means that there is no growth of economic growth.

Step by step solution

01

Step 1. Unemployment Rate.

The unemployment rate is the percentage of adults who are in the labor force and thus seeking jobs, but who do not have jobs.

02

Step 2. Zero Unemployment.

Zero unemployment is not desirable for the country because it means that there is no growth of economic growth. The industries will not be able to expand existing business and people would have no scope to change their jobs and the economy will not try to grow.

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Most popular questions from this chapter

Would you expect hidden unemployment to be higher, lower, or about the same when the unemployment rate is high, say 10%, versus low, say 4%? Explain.

What type of unemployment (cyclical, frictional, or structural) applies to each of the following:

(a) landscapers laid off in response to a drop in new housing construction during a recession.

(b) coal miners laid off due to EPA regulations that shut down coal-fired power

(c) a financial analyst who quits his/her job in Chicago and is pursuing similar work in Arizona

(d) printers were laid off due to a drop in demand for printed catalogs and flyers as firms go the internet to promote and advertise their products.

(e) factory workers in the U.S. were laid off as the plants shut down and move to Mexico and Ireland.

What happens to the unemployment rate when unemployed workers are reclassified as discouraged workers?

Why is there unemployment in a labor market with

flexible wages?

Is it desirable to eliminate natural unemployment? Why or why not?
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