One of the ways the government can cushion the unemployed worker is to pay him/her unemployment benefits. If the government pays these benefits to an unemployed worker, it reduces the marginal private search costs of the unemployed. Why then could such payment lead to prolonged unemployment.

If Macroland had the following information   200 - Employed Workers  100 - Not working, but still looking for a job 100 - Students not looking for a job 100 - Retired workers 100 - Children What is the Employment to Population Rate? Your answer should be a percentage

The population (age 16 and over) of Pageland is 150 million; 11 million are unemployed, and 89 million hold jobs. What are the rates of unemployment and labor force participation of Pageland? Unemployment is 7 percent, and labor force participation is 88 percent. Unemployment is 7 percent, and labor force participation is 72 percent. Unemployment is 11 percent, and labor force participation is 66 percent. Unemployment is 11 percent, and labor force participation is 89 percent.

Suppose your earn 3% wage from your employer. Then, the government releases economic data indicating the inflation rate is running at 5%. Are you better off? Based upon changes in your real wages, did your standard of living improve ?