Price Level 0 A LRAS 0, ON 0₂ SRAS, Real GDP SRAS SRAS₂ ON=Natural Real GDP AD Refer to Figure 9-3. If the economy is in short-run equilibrium at point C, the (actual) unemployment rate is less than the natural unemployment rate. the (actual) unemployment rate is equal to the natural unemployment rate. the (actual) unemployment rate is greater than the natural unemployment rate. the relationship between the (actual) unemployment rate and the natural unemployment rate cannot be determined from the available information.

Price Level 0 A LRAS 0, ON 0₂ SRAS, Real GDP SRAS SRAS₂ ON=Natural Real GDP AD Refer to Figure 9-3. If the economy is in short-run equilibrium at point C, the (actual) unemployment rate is less than the natural unemployment rate. the (actual) unemployment rate is equal to the natural unemployment rate. the (actual) unemployment rate is greater than the natural unemployment rate. the relationship between the (actual) unemployment rate and the natural unemployment rate cannot be determined from the available information.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 7P

See similar textbooks

Similar questions

The figure below depicts the economy of Altrua, which is presently in equilibrium. Enter your responses below rounded to one decimal place. Price level 340 360 380 400 420 440 460 480 500 520 Real GDP AS AD 60 LAS a. The size of its recessionary gap is $ b. The size of this gap as a percentage of its actual GDP is c. If the natural rate of unemployment is 3%, use Okun's law to calculate the amount of actual unemployment in Altrua The actual rate of unemployment is 15 %.
In a recession O cyclical unemployment rises O frictional unemployment rises O real GDP may rise
Price level 333 P₂ P Panel(a) X LRAS Y₁ Yp Real GDP SRAS Ob) Y1 in panel (b) Oc) Y1 in panel (a) d) Yp in panel (a) AD Panel() Price level LRAS P₂ P₂ ™X P₁ Yo Y₁ Real GDP SRAS Which best illustrates the equilibrium level of GDP consistent with some cyclical unemployment? a) Yp in panel (b) AD
Consider a hypothetical economy in which the labor force consists of 300 people. Of those, 270 people are employed full-time and 30 people are unemployed. The economy follows the same conventions as the U.S. Bureau of Labor Statistics (BLS) in computing its employment figures. Therefore, Initially the unemployment rate is calculated as follows: Unemployment Rate = Manber of played ople Number of Popie Labor Fore 30 x 100 300 <= 10% W x 100 Suppose a reduction in foreign demand for this economy's products causes an economic recession following table offers two possible scenarios resulting from the recession. Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor market changes in this economy. Scenario A: Firms reduce work hours by 10%. The number of involuntary part-time workers rises as firms respond to the reduction in the demand for their products by reducing the hours of each employed person from 40…
1.2 At full employment, there are only frictional and...............unemployment.
Use the figure below to answer the following question(s). Figure 10-7 LRAS SRAS AD Real GDP Goods and Services Markets At what output level would the actual rate of unemployment equal the economy's natural rate of unemployment in Figure 10-7? O at any output greater than y2 O y2 O at any output less than y1 Price level
The figure on the right shows the average monthly flows (in millions) between employment, unemployment, and non-participation for a hypothetical economy. According to the figure, the proportion of unemployed workers finding jobs in an average month is %. (Round your response to one decimal place.) U.S. data covering the 1996-2014 period show that the proportion of unemployed workers finding jobs has O A. an indeterminate relationship with the unemployment rate. OB. a strong inverse relationship with the unemployment rate. OC. a weak inverse relationship with the unemployment rate. OD. a strong positive relationship with the unemployment rate. Employment 165.8 million 1.9 4.7 2.6 1.7 5.3 Unemployment Out of the labor force 7.7 million 2.0 77.1 million G
Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS. Labor Force Participation RateLabor Force Participation Rate = = According to this formula, what is the labor force participation rate of this economy of six people? 40% 50% 80% 100% Complete the right half of the following equation to reflect the unemployment rate reported by the BLS. Unemployment RateUnemployment Rate = = According to this formula, what is the unemployment rate of this economy of six people? 40% 50% 80% 100%
omplete the right half of the following equation to reflect the unemployment rate reported by the BLS. Unemployment RateUnemployment Rate = =
Suppose the economy of Mistania has an adult population of 600 million people. 43 million workers are unemployed and 437 millions are employed. What is the labor force? ← OBelow the Natural Rate of Unemployment OAt the Natural Rate of Unemployment OAbove the Natural Rate of Unemployment million What is the unemployment rate? Indicate how the unemployment rate in Mistania compares to the Natural Rate of Unemployment. %
FRED -Unemployment Rate 10 9. 4 1970 1975 1980 1985 1990 1995 2000 2010 2015 2020 Shaded areas indicate US recessions Source: US. Bureau of Labor Statstics myl red/gwoss What is the relationship between the unemployment rate and Real GDP? O Unemployment increases when Real GDP decreases O Unemployment and Real GDP both increase in periods of stagflation O Unemployment and Real GDP are not related O Unemployment decreases when Real GDP decreases
FRED Unemployment Rate 10 1970 1975 1980 1990 1995 2000 2005 2010 2015 2020 Shaded areas indicate US recessions Source: U.S Bureau of Labor Statistics myf.red/g/woss What is the relationship between the unemployment rate and Real GDP? O Unemployment decreases when Real GDP decreases O Unemployment increases when Real GDP decreases O Unemployment and Real GDP are not related O Unemployment and Real GDP both increase in periods of stagflation