For the past decade, the unemployment rate in Western Europe has been higher than the unemployment rate in the United States
Based on this fact, is the natural unemployment rate larger in Western Europe or in the United States? Why might the natural rates differ between the two areas?
The natural unemployment rate is probably higher in Western Europe than in the United States. A major reason why this difference exists is that unemployment benefit payments in Western Europe are higher than in the United States, so people stay frictionally unemployed longer in Western Europe.
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When a market is not in equilibrium:
A. a change in either supply or demand is required to reestablish equilibrium. B. there is neither excess supply nor excess demand. C. the economic motives of sellers and buyers will move the market to its equilibrium. D. government intervention is required to achieve equilibrium.
"Disgruntled" workers who quit their jobs to find "a more reasonable boss" are experiencing
A) involuntarily unemployment. B) mismatch unemployment. C) cyclically unemployment. D) turnover unemployment.
How much is induced consumption when disposable income is $2 trillion?
If there are powerful unions in a labor market, the use of the supply-and-demand model to analyze labor markets
A. will cause you to believe the wage will be higher than it is. B. will cause you to believe the wage will be lower than it is. C. will cause you to believe that fewer people will be hired than will be. D. is completely accurate.