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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.

Phillips Curve Relationship

***THIS IS NOT A REQUEST FOR A WRITTEN PAPER, RATHER POINTS TO EXPOUND ON.*** Present a thorough analysis of the inverse relationship between inflation and unemployment reflected by the Phillips curve. Describe the importance of expectations and how they affect the actual relationship between the inflation rate and the unempl

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?

Discussion on Local Unemployment Rates

Why is unemployment high or low in your area? Why does it seem like the official 7.6 percent unemployment rate is not a true reflection of the number of people not working? What factors affect 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

Economics: Cyclical vs. Structural

Question: For each of the below statements, state whether the unemployment is structural or cyclical. a) Unemployment rises as output in the economy falls. b) The demand for workers to make typewriters falls as more consumers switch to computers. c) As the United States becomes a more high-tech producer, labor-intensive facto

Labor force and unemployment rate

Calculate the following given the information about the economy in the table. Total Population 260 million Non institutional population 200 million Incapable of working 60 million Not in the labor force 66 million Employed 134 million Unemployed 10 million a. Labor force b. Unemployment rate

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?

Privatization and Vouchers

Please respond to the following: 1) Take a position for or against the complete privatization of the educational system and support your position with evidence or examples. 2) Discuss the pros and cons of the voucher program and determine whether or not this is an economic policy you would recommend.

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!

Value of economics in life

Suppose you were having lunch with your best friend who just enrolled in an economics class. He was complaining about how irrelevant the class was, commenting that he saw no useful purpose for economics. According to your friend, "I'm a nursing major. I will never use this stuff in the real world." Having just completed the same

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?

poverty analysis

Go to the following Web site, www.census.gov, and select Poverty. Then use the information on this site to answer the following questions: What is the official poverty line? Is the number of people higher or lower than it was last year? Ten years ago? Why? How many states had an increase in the poverty rate compared t

Exhaustive and non-exhaustive expenditures

Explain what economists mean when they say government purchases are "exhaustive" expenditures whereas government transfer payments are "non-exhaustive" expenditures. Give an example of a government purchase and a government transfer payment with explanations.

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?

Calculation of the Unemployment Rate

a) Calculate the unemployment rate when labor force is 154 million and number of unemployed is 14.6 million. b) Due to the slow-down economy, it is expected that there will be 0.7 million additional workers who will lose their jobs next month. What is the expected unemployment rate for next month?

Unemployment and inflation Facets

An economy has an unemployment rate of 4 percent and an inflation rate of 5 percent a year at point A in the figure **figure attached** Some events occur that move the economy in a clockwise loop from A to B to D to C and back to A. A) Describe the events that could create this sequence. B) Draw in the figure the seque

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

Aggregate Supply

Explain whether each of the following events will increase, decrease, or have no effect on long run aggregate supply. a. The United States experiences a wave of immigration. b. Congress raises the minimum wage to $10 per hour. c. Intel invents a new and more powerful computer chip. d. A severe hurricane damages factories a

Economics: Population Question

The Bureau of Labor Statistics announced that in February 2008, of all adult Americans, 145, 999,000 were employed, 7,381,000 were unemployed, and 79,436,000 were not in the labor force. Use this information to calculate: a. The adult population b. The labor force c. The labor-force participation rate d. The unemployment

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