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Unemployment

Unemployment refers to the number of individuals who are unemployed and currently able, of age, and searching for work. The unemployment rate is the number of unemployed people expressed as a fraction of the labour force, which is the number of unemployed and employed people. Note that the labour force is different than the population because the population can include people that for example are not of age to work. The unemployment of people who have been out of work for over a year are categorized as long tem. Vacancies are the when there are jobs available that are not filled.

The causes of unemployment are classified into different groups. The first is called frictional unemployment, which is caused by people transitioning between different jobs and when they are searching for jobs. This is the normal turnover of labour and is voluntary. The second type of unemployment is called structural unemployment and occurs when there is a mismatch between the quantity of labour supplied and quantity of labour demanded. This can be a mismatch between the characteristics of the labour force and the characteristics of the jobs available. The third type is called cyclical unemployment and is neither structural nor frictional. It is caused by the highs and lows of the business cycle, such as unemployment being caused by economic recessions. Seasonal unemployment is when certain industries need employees for a short period of time.

Even if an economy has full employment, there will still be some level of unemployment that is made up of the different types of cyclical, seasonal, frictional, or structural unemployment. This is what is known as the Natural Rate of Unemployment. It is important to understand how unemployment works in an economy because it relates to human welfare.

Macroeconomics: Inflation, Unemployment and Consumer Price Index

I need assistance with the following: 1. The consumer price index (CPI) is a fixed-weighted index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good

Structural, Cyclical & Frictional Unemployment

Please help answer the following discussion questions: What are the three types of unemployment? Unemployment is seen by some as undesirable. Are all three types of unemployment undesirable? Could the advent of the Internet completely eliminate frictional unemployment?

GDP, Consumer price index, Unemployment rate

Calculate GDP, Consumer price index, Unemployment rate (Please see the attached for the correctly formatted questions.) Study Guide practice Please show work for all the questions, this is my practice for the upcoming exam and I need to know the steps you take to get the answers. QUESTION 1 Using exhibit 1 a. Wh

Stimulus Bill

Question: The US Congress passed a stimulus bill in Feb. 2009. What was the justification for doing so? Given the magnitude of the stimulus amount, do you suppose it has achieved its intended outcomes? Explain you answer.

Stagflation, Volatile Component, and Multiplier Effect

I need a explanation for these questions: 1) Is it true the USA may be moving into a period of stagflation? 2) Is it false in the equation C + I + G + NX = GDP that the most volatile component is C? 3) The larger the MPC, the smaller the multiplier effect? (True, False?)

Paradox of Thrift

When households become concerned with their future savings and attempt to increase their savings, how does this effect the overall economy? What is the Paradox of Thrift?

Types of Unemployment

I understand the three types of unemployment are: seasonal unemployment, frictional unemployment, and structural unemployment. I am having a very difficult time discussing whether the internet could completely eliminate frictional unemployment? Also, why is unemployment necessary for the economy? Thank you!

Different Types of Unemployment

What are the three different types of unemployment? I am saying they are: 1. Friction unemployment 2. Structural unemployment 3. Cyclical unemployment. Which of these are serious concerns for an economy? What type of unemployment is caused by the recession?

assume the following data for a country: total population, 500; population under 16 years of age are institutionalized, 120; not in labor force, 150; unemployed, 23, part-time workers looking for full time jobs, 10. What is the size of the labor force? what is the official unemployment rate?

assume the following data for a country: total population, 500; population under 16 years of age are institutionalized, 120; not in labor force, 150; unemployed, 23, part-time workers looking for full time jobs, 10. What is the size of the labor force? what is the official unemployment rate?

Argentinian economy is assessed.

The spreadsheet provides information about the economy in Argentina. Column A is the year, Column B is real GDP in billions of 2000 pesos, and column C is the price level. A B C 1 1997 277 105.6 2 1998 288 103.8 3 1999 278 101.9 4 2000 276 102.9 5 2001 264 101.8 6 2002 235 132.9 7 2003 256

A manufacture is considering outsourcing their product to China, where the costs to produce the product are considerably cheaper (even when factoring in transportation costs). You have been brought in as a consultant to discuss the economic considerations of such a move. How do you direct your clients thinking?

A manufacture is considering outsourcing their product to China, where the costs to produce the product are considerably cheaper (even when factoring in transportation costs). You have been brought in as a consultant to discuss the economic considerations of such a move. How do you direct your clients thinking?

The effects of fiscal policy, specifially the 2008 tax rebate.

(a) According to the News article, how much more did the average household spend on appliances, electronics, and furniture when it received the 2008 tax rebate? (b) If the MPC was 0.9, how much would cumulative spending increase as a result? I N T H E N E W S Just How Stimulating Are Those Checks? To get an idea of how muc

Interpreting Macroeconomic Conditions

This problem involves analyzing several indicators of the macroeconomic conditions in an economy, which includes interest rate, income, CPI, inventory levels, wage, consumer confidence and unemployment. These indicators need to be analyzed and a report needs to be prepared to explain the short impact on firms in the grocery an

The real GDP is assessed.

Suppose nominal GDP in 1999 was $200 billion, and in 2001, it was $270 billion. The general price index in 1999 was 100 and in 2001 it was 150. Between 1999 and 2001, the real GDP rose by what percent? (b.) Use the following scenario to answer questions (b1) and (b2). In a given year in the United States, the total number

Disequilibrium in the labour market and wage rates Figure 9.4 provides measures of disequilibrium in the labour market. At a wage rate of (W/P)E the market is in equilibrium. I would like to know does this mean that unemployment will not exist at this wage rate - explain? In addition, if unemployment does exist at this wage rate, can it be eliminated? If so, how?

I have attached a diagram for reference Figure 9.4 provides measures of disequilibrium in the labour market. At a wage rate of (W/P)E the market is in equilibrium. I would like to know does this mean that unemployment will not exist at this wage rate - explain? In addition, if unemployment does exist at this wage rate, c

Monetary Policy and changes in real GDP.

The information below shows the situation in 2010 and 2011 if Fed does not use the monetary policy:   Year Potential Real GDP Real GDP Price Level 2010 $14 trillion $14 trillion 120 2011 $15 trillion $15.2 trillion 133 a) If Fed wants to keep real G

long-run and short-run demand for labour schedules

(1) In terms of supply and demand analysis, what are some factors that could have caused the hypothesized fall in wages from W0 to W1 for this organization. (2) Why would the organization represented in the firm want to increase its labour input to L1. (3) How would it be possible for the organization to increase its labou

Should the government regulate Google?

Need help with the questions below... Should the government regulate Google on its services and prices due to Googleâ??s current dominance in several information markets, such as on-line search? Present an argument either for doing so or not doing so. 18. You are a strong advocate for a one-year investment project that

Merger consideration

1. With lower prices for gasoline than a couple of years ago will Americans start spending again? If they do, what will they spend the savings on? Vacations? Some other expenses? 2. In many industries, such as supermarkets, banks, cell phone companies, etc., because of mergers our choices as consumers are reduced to two

Unemployment rate determination

. Consider the follow labor statistics Labor Stats The Labor Market This table shows the 2003 data for males and females ages 16 and over in the imaginary country of Arbitland. 1. Not in labor force a. male: 45 million b. female: 35 million 2. Unemployed a. male: 5 million b. female: 5 million 3. Employed a. male: 85 m

Market Efficiency and Government Intervention

Has the time come for government to abolish rent controls and the minimum wage? What do you think? Do both rent controls and minimum wage laws achieve their intended purposes? Provide two examples. Are there any unintended consequences? Provide two examples.

Economic Profit and Loss

4. Answer the next questions on the basis of the following cost data for a firm in pure competition: OUTPUT ------ TFC ---------- TVC 0 $100.00 0.00 1 100.00 70.00 2 100.00 120.00 3 100.00 150.00 4

Minimum wage legislation

Minimum wage legislation requires most firms to pay workers no less than the legislated minimum wage per hour. Using marginal productivity theory, explain how a change in the minimum wage affects the employment of unskilled labor.