answer oll parts 2. (a) Why does structural unemployment happen? Explain the sources of structuralunemployment. (b) Of all adult workable people in a country, 1,000 are looking for jobs,9,000 are working, and 2,000 are no longer looking for jobs. Using this information,calculate the labor force participation rate and the unemployment rate.1 13. Imagine we live in a classical world. Suppose that the production function is Y = LZK²,where L is the amount of labor and K is the amount of capital. The economy has 100units of labor and 100 units of capital.a. Does the production function show Constant Returns to Scale? Why?b. Derive an expression for the marginal product of labor. Is the marginal product oflabor diminishing? How does an increase in the amount of capital affect the marginalproduct of labor? Explain.c. What are the real wage and rental price of capital?d. What is the income share paid to labor? What is the income share paid to capital?

Structural unemployment is a longer-lasting form of unemployment caused by fundamental shifts in an…

(a) Why does structural unemployment happen? Explain the sources of structural unemployment. (b) Of all adult workable people in a country, 1,000 are looking for jobs, 9,000 are working, and 2,000 are no longer looking for jobs. Using this information, calculate the labor force participation rate and the unemployment rate.

(a) Why does structural unemployment happen? Explain the sources of structural unemployment. (b) Of all adult workable people in a country, 1,000 are looking for jobs, 9,000 are working, and 2,000 are no longer looking for jobs. Using this information, calculate the labor force participation rate and the unemployment rate.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 25RQ: Would you expect the natural rate of unemployment to remain the same within one country over the...

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