Question

In: Economics

1. Is is possible for the unemployment to fall in this month even if no one...

1. Is is possible for the unemployment to fall in this month even if no one who was counted as unemployed in the previous month found employment this month? Yes or No?

Explain your answer.

Solutions

Expert Solution

No it's not possible for the unemployment to fall in this month even if no one who was counted as unemployed in the previous month found employment this month.

Explaination: there is always going to be some unemployment even if there is full employment. This type of unemployment which exists during full employment is natural unemployment. This natural unemployment is generally voluntary unemployment. It can characterized as:

Frictional unemployment: this type of unemployment exist during the time gap when one person leaves one job and joins another.

Structural unemployment: this type of unemployment arises due to to mismatch between the required skills and the available skills.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

What is the increase in unemployment above equilibrium unemployment caused by a fall in aggregate demand...
What is the increase in unemployment above equilibrium unemployment caused by a fall in aggregate demand associated with the business cycle?
given the possible types of unemployment , cyclical frictional and structral, which one is the most...
given the possible types of unemployment , cyclical frictional and structral, which one is the most likely to worsen in each of the following cases 1) income decrease 2) the government decides to close job search websites 3) The introduction of distance learining in schools and universties
2. Often a sharp fall in stock market causes a fall in bond rate, even though...
2. Often a sharp fall in stock market causes a fall in bond rate, even though macroeconomic factors affecting bond rates have not changed (e.g. October 1987). How would the loanable funds theory explain this phenomenon?
Does real GDP growth cause unemployment to fall? Collect data on US average quarterly unemployment and...
Does real GDP growth cause unemployment to fall? Collect data on US average quarterly unemployment and US GDP growth the last 10 years.Run a linear regression, and report the results (t-statistic or p-value, R2).Is there a strong causation?
Does real GDP growth cause unemployment to fall? Collect data on US average quarterly unemployment and...
Does real GDP growth cause unemployment to fall? Collect data on US average quarterly unemployment and US GDP growth the last 10 years. Run a linear regression, and report the results (t-statistic or p-value, R2). Is there a strong causation?
An important property of the law of one price is that it holds even in markets where arbitrage is possible.
T/F problemExplain the reason-An important property of the law of one price is that it holds even in markets where arbitrage is possible.
Estimate the total power that your household draws from DTE, in one month. Then, if possible,...
Estimate the total power that your household draws from DTE, in one month. Then, if possible, compare the total power (in kWh) to the actual power that you were billed, last month. To successfully "compare" the numbers, you should determine the percent difference between your estimated power and the actual power that your household payed for last month. You should show how you estimated your total power and your percent difference calculation. Note: DTE bills you in kWh. This stands...
1, If we know that on average 50% of unemployed persons leave unemployment each month, then...
1, If we know that on average 50% of unemployed persons leave unemployment each month, then the average duration of unemployment is: A 2 months B 6 months C 2 years D more information is needed 2,Efficiency wage theory suggests that: A firms will be more resistant to wage increases as the labour market tightens B the government can only set tax rates so high before people will prefer not to work C unskilled workers will have a lower turnover...
1- Many different types of contracts exist, but a hight level they fall into one of...
1- Many different types of contracts exist, but a hight level they fall into one of three categories: -Fixed price contracts -Cost reimbursable contracts -Time and material contracts The conceptual difference between each contract type is based primarily on: -To what degree does the buyer or seller assume the risk of cost overruns? -How much flexibility exist within the execution of the contract to make changes to the scope or implementation approach? Which of the following is False: A) With...
Which of the following would cause frictional unemployment to fall? Trade union membership declines, causing a...
Which of the following would cause frictional unemployment to fall? Trade union membership declines, causing a fall in the market wage. Unemployment benefits become less generous. Technological change leads to better employee-employer matching software, speeding up the process by which unemployed workers find prospective employers. The economy booms. The government enacts a law requiring businesses to provide a year's notice before laid-off workers actually leave their jobs. Unemployment — End of Chapter Problem a. Long-term unemployment from a severe economic...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT