1. Define the "natural rate of unemployment" and how economists use this concept to decide which...

1. Define the "natural rate of unemployment" and how economists use this concept to decide which type of fiscal policy to use.

. For a number of reasons, economists believe that the natural rate of unemployment in the U.S. economy declined from the 1980s to the 1990s and early 2000s. Provide at least two different reasons for this phenomenon and discuss each.

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Rahul Sunny answered 1 year ago

For a number of reasons, economists believe that the natural rate of unemployment in the U.S....

For a number of reasons, economists believe that the natural rate of unemployment in the U.S. economy declined from the 1980s to the 1990s and early 2000s. Provide at least two different reasons for this phenomenon and discuss each.

The natural rate of unemployment is the unemployment rate at which the inflation rate has no...

The natural rate of unemployment is the unemployment rate at which the inflation rate has no tendency to increase or decrease. However, the natural rate of unemployment is not fixed. What causes changes in the natural rate of unemployment? Which of the following will not cause the natural rate of unemployment to change? A. Many previous periods with high rates of unemployment. B. Changes in the money supply resulting from monetary policy. C. Changes in labor market institutions. D. Changes...

Use the model of natural rate of unemployment and the steady state condition for unemployment for...

Use the model of natural rate of unemployment and the steady state condition for unemployment for this question. Suppose that the rate of job separation in an economy is 0.03 and the rate of job finding is 0.12, while the current unemployment rate is 0.10. How do you think unemployment rate will change in the upcoming periods (increase, decrease, no change or ambiguous) and why do you expect to see this pattern?

Define the following terms. a) Natural rate of unemployment – b) Frictional unemployment – c) Unit...

Define the following terms. a) Natural rate of unemployment – b) Frictional unemployment – c) Unit of account – d) Open-market operations (OMO) – e) Classical dichotomy – f) Velocity of money – g) Recession – h) Depression – i) Marginal propensity to consume – j) Crowding-out effect –

1. Carefully define the unemployment rate. How is the unemployment rate used to measure the economy’s...

1. Carefully define the unemployment rate. How is the unemployment rate used to measure the economy’s performance? What flaws and/or pitfalls are there in the measure?

1. Carefully define the unemployment rate. How is the unemployment rate used to measure the economy’s...

1. Carefully define the unemployment rate. How is the unemployment rate used to measure the economy’s performance? What flaws and/or pitfalls are there in the measure?

Question 1. A. Define the concepts of full-employment GDP, the actual natural rate of unemployment and...

Question 1. A. Define the concepts of full-employment GDP, the actual natural rate of unemployment and the inflation rate target. Explain how macroeconomists use these concepts in order to evaluate the current state of the economy. B. Is a country's GDP a good indicator of the welfare of its citizens? Explain your answer. Question 2. A. Describe the concepts of the "circular flow of income" through the economy and how the concept is related to the macroeconomic identity Y =...

Which of the following is true? a. At the natural rate of unemployment, the economy...

Which of the following is true? a. At the natural rate of unemployment, the economy is considered to be at full employment. b. At full employment, the economy is producing at its potential output. c. If unemployment is greater than its natural rate, the economy is producing at less than its potential output. d. All of the above are true.

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.

6. What is the difference between the natural rate of unemployment and cyclical unemployment? How are...

6. What is the difference between the natural rate of unemployment and cyclical unemployment? How are these related to structural and frictional unemployment? The President of the Minneapolis Federal Reserve Branch Bank has suggested the natural rate may have decreased in recent years. Offer some reasons why he may be correct.

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1. Define the "natural rate of unemployment" and how economists use this concept to decide which...

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For a number of reasons, economists believe that the natural rate of unemployment in the U.S....

The natural rate of unemployment is the unemployment rate at which the inflation rate has no...

Use the model of natural rate of unemployment and the steady state condition for unemployment for...

Define the following terms. a) Natural rate of unemployment – b) Frictional unemployment – c) Unit...

1. Carefully define the unemployment rate. How is the unemployment rate used to measure the economy’s...

1. Carefully define the unemployment rate. How is the unemployment rate used to measure the economy’s...

Question 1. A. Define the concepts of full-employment GDP, the actual natural rate of unemployment and...

Which of the following is true? a. At the natural rate of unemployment, the economy...

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

6. What is the difference between the natural rate of unemployment and cyclical unemployment? How are...