1.What does the natural rate of unemployment refer to? Discuss. 2.What is the natural rate of...

1.What does the natural rate of unemployment refer to? Discuss.

2.What is the natural rate of unemployment equal to? Discuss.

3.Can the natural rate of unemployment ever change? If so, how? Discuss.

Expert Solution

Ans

The natural rate of unemployment is the rate that results from real factors. The natural rate of unemployment includes structural, frictional and surplus unemployment. This unemployment is found even in healthy economy.

2 As said it is equal to structural, frictional and surplus. Currently it is around 5-5.5% in usa.

3 yes natural rate of unemployment changes. Even Friedman says that it is changing rate not constant. It changes with economic forces or fundamentals. Even. Real structural factors like increase in real productive capacity will decrease natural rate of unemployment. It is influenced by supply side factors like labor market imperfections. Greater unemployment benefits relative to wage increases it and vice versa. Difficulty in receiving unemployment benefits increase it. Greater the minimum wage greater the natural rate and vice versa. Greater occupational mobility decreases it and vice versa. Greater skills of workers reduce it.

Rahul Sunny answered 2 years ago

1. What determines the natural rate of unemployment? 2. In the Solow model, how does the...

1. What determines the natural rate of unemployment? 2. In the Solow model, how does the saving rate affect the steady-state level of income? How does it affect the steady-state rate of growth? 3. Why might an economic policymaker choose the Golden Rule level of capital? 4. In the Solow model, how does the rate of population growth affect the steady-state level of income? How does it affect the steady-state rate of growth?

2 A. What is the natural rate of Unemployment? What are the causes of this kind...

2 A. What is the natural rate of Unemployment? What are the causes of this kind of Unemployment? Describe any one of the causes of natural rate of unemployment in detail. 2 B. (GRAPH IS MANDATORY) You can upload the graph as a file (Draw the graph/Take a picture) 3. RESPONSE (T OR F) AND CORRECT EXPLANATION. (a) Malthus was pessimistic about nations’ economic growth. (b) French riots in March 2006 happened due to reform in International Trade laws.

Natural Rate of Unemployment #2 a) An economy has had an unemployment rate of 10% for...

Natural Rate of Unemployment #2 a) An economy has had an unemployment rate of 10% for a very long time. 18% of all unemployed workers find a job every month. What share of workers lose their job every month? b) An economy has had an unemployment rate of 5% for a very long time. 3% of all employed workers lose their job every month. What share of unemployed find jobs every month? Natural Rate of Unemployment #3 a) An economy...

What is the Natural Rate of Unemployment? And how does its rise affect output in the...

What is the Natural Rate of Unemployment? And how does its rise affect output in the AD/AS Model? (Hint: draw figure and show shifts

2. The USA's natural rate of unemployment is about 1%, and the labor force participation rate...

2. The USA's natural rate of unemployment is about 1%, and the labor force participation rate is about 60%. Interpret these values. What does it mean for the US economy and population? Why is the Unemployment rate so low? Please, explain clearly and show how to calculate. Thank you.

difference between the terms cyclical and seasonal unemployment. Does natural rate of unemployment include cyclical unemployment...

difference between the terms cyclical and seasonal unemployment. Does natural rate of unemployment include cyclical unemployment ? why? (need 500-600 words with figure if possible)

What is the natural rate of unemployment? Explain how the different types of unemployment that are...

What is the natural rate of unemployment? Explain how the different types of unemployment that are included in such rate differ from each other.

What effect does an increase in the minimum wage have on the natural unemployment rate? Why?...

What effect does an increase in the minimum wage have on the natural unemployment rate? Why? Please feel free to use examples with your posting (from the real world).

25. What does BLS say is the current natural rate of unemployment? 4.0% 5.5%...

25. What does BLS say is the current natural rate of unemployment? 4.0% 5.5% 10.2% Trick question: BLS does not provide a measure of the natural rate 26. Which of the following are reasons why the official unemployment rate understates economic hardship? (check all that apply) Doesn`t take into account discouraged workers Doesn`t take into account if there are other wage earners in the household Doesn`t take into account the working poor Doesn`t take into account underemployment...

Discuss why it is very difficult to reduce the unemployment rate below the natural rate?

Question