What is unemployment and what is the unemployment rate? What are the costs of unemployment?
What will be an ideal response?
Unemployment refers to someone who is without a job but who is actively looking for work. The unemployment rate is the proportion of the labor force, which is the people 16 and older who either are working or are looking for work, that is unemployed. The cost of unemployment is the reduced output that could have been made with full employment, as well as the psychological costs to the unemployed.
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Production processes in developing countries tend to be
a. labor intensive b. capital intensive c. highly automated d. market oriented e. none of the above
If the probability of a bond default increases because corporations begin to suffer large losses, then the default risk on corporate bonds will ________ and the expected return on these bonds will ________, everything else held constant
A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
The process of globalization has ________
A) decreased inequality B) increased inequality C) had little measurable effect on income inequality D) has increased income inequality in developing countries but decreased inequality in developed countries
The IS-LM model was developed by
A) Friedman and Phelps. B) Hicks and Hansen. C) Modigliani and Friedman. D) Lucas and Sargent. E) none of the above