"Frictional unemployment and the natural rate of unemployment depends on the age distribution of the population.". Explain the statement with suitable reasons
Unemployment rates are typically lower for people older than 24 years of age than they are for those who are 24 or younger.
Prime-age workers, those in the 25–54 years age bracket, are typically at a place in their lives when they want very much to have a job and income arriving at all times.
Some proportion of workers who are under 30 may be trying out jobs and finding out new options in life, while a majority of those over 55 may be eyeing retirement.
Thus, a society with a relatively high proportion of relatively young workers will tend to have a higher unemployment rate than a society with a higher proportion of middle-aged workers.
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Refer to the graph below. The long-run average change in real GDP is shown by
a. the Growth trend line.
b. the contraction.
c. the expansion.
d. the peak.
Identify the immediate effect of each of the following events on U.S. GDP and its components
a. James receives a Social Security check. b. John buys an Italian sports car. c. Henry buys domestically produced tools for his construction company.
Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $80,000. The retailer, in turn, brings in $155,000 from selling the bulbs directly to final customers. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year?
What will be an ideal response?
Which of the following will lead to a decrease in the price of existing bonds?
A. a reduction in the money supply B. a decrease in planned investment spending C. a decrease in the rate of interest D. an inward shift in money demand