Suppose you walk into an unemployment office and found the following people: a laid-off Mall Santa Claus, an unemployed Auto industry worker ( who is subject to call back by their company),A woman who lost her job at a manufacturer because the company relocated to Mexico, and a nurse who just moved to town because his wife recently started a new job. Assign the following labels to the people above: frictionally unemployed, structurally unemployed, and seasonally unemployed. Then, explain your assignment of the terms to each person.
Answer:
a laid-off mall Santa Claus, (Seasonal Unemployment)
an unemployed auto-industry worker (who is subject to callback by their company), (cyclical unemployment)
a woman who lost her job at a manufacturer because the company relocated to Mexico, and (Structural unemployment)
a nurse who just moved to town because his wife recently started a new job.( Frictional unemployment)
Change in seasonal demand causes seasonal unemployment. Cyclical unemployment is caused by change in aggregate demand. When demand falls, there is unemployment. Frictional unemployment is result of searching time for new job,
You might also like to view...
If a macroeconomist studying the causes of unemployment finds that, historically, changes in technology seem to have caused between five and 15 percent of changes in unemployment, then this macroeconomist is at which step in the process of developing
an economic model? A) Identify the exogenous variables. B) Identify the endogenous variables. C) Develop a model. D) Compare the model with the data. E) Conduct prediction and policy analysis.
A good that has social costs that are less than private costs has a quantity that is
A) too high. B) too low. C) just right. D) equal to zero.
Natural monopolies are mostly regulated industries because otherwise too many firms would enter the market and price would be driven too low for any firm to offer goods for a profit.
Answer the following statement true (T) or false (F)
About what price per barrel of oil is necessary for biodiesel to become economically viable as an alternative energy source?
A. $30 per barrel B. $50 per barrel C. $100 per barrel D. $80 per barrel