What occurs in the labor market when the real wage rate is above the full-employment equilibrium level?When the real wage rate is above the full-employment equilibrium level,O A. the natural unemployment rate increasesO B. unemployment benefits decreaseC. the quantity of labor demanded increasesO D. the natural unemployment rate decreasesClick to select your answer.

Full employment level is the level at which cyclical unemployment is zero and the unemployment in…

What occurs in the labor market when the real wage rate is above the full-employment equilibrium level? When the real wage rate is above the full-employment equilibrium level, A. the natural unemployment rate increases O B. unemployment benefits decrease O C. the quantity of labor demanded increases D. the natural unemployment rate decreases

What occurs in the labor market when the real wage rate is above the full-employment equilibrium level? When the real wage rate is above the full-employment equilibrium level, A. the natural unemployment rate increases O B. unemployment benefits decrease O C. the quantity of labor demanded increases D. the natural unemployment rate decreases

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When the economy is at full employment, which types of unemployment remain? A. frictional and cyclical B. frictional and structural C. cyclical and structural D. None of the above. Full employment means that there is no unemployment, so the unemployment rate would be zero. The "normal" underlying level of unemployment in the economy is O A. the sum of structural unemployment and frictional unemployment. B. the natural rate of unemployment. C. the full-employment rate of unemployment. O D. All of the above.
Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially Select one: O a. cyclical unemployment increases O b. frictional unemployment increases O . the economy remains at full employment O d. there is a shortage of workers in both sectors O e. structural unemployment increases
In 2014, some European countries were dealing with a recession. Workers who were laid off in those countries due to the economic downturn would be Select one: O a. seasonally unemployed. O b. structurally unemployed. O c frictionally unemployed. O d. cyclically unemployed.
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As the price level falls, real wage ____________and people choose to work ___________. a. rises; less b. rises; more c. falls; more d. falls; less
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How does cyclical unemployment change between a business cycle trough and a business cycle peak? At a business cycle trough, cyclical unemployment is and at a business cycle peak, cyclical unemployment is O A. positive; negative B. high; zero C. zero; low O D. negative; positive
Homework (Ch 11) Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 10 2 20 1. Calculators 50 50 54 75 Large coffees 200 200 1 Energy drinks 100 200 4 Textbooks 10 100 1,000 120 150 Total cost 1,470 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by Between 2018 and 2019, the CSPI increased by 15…
during expansions. The rate of unemployment tends to during recessions and During prolonged recessions, it is difficult for workers to find a job and many workers become discouraged. Which of the following is a correct statement? O A. Discouraged workers are counted in the labor force and cause the participation rate to fall. B. Discouraged workers are counted in the labor force and cause the participation rate to rise. C. Discouraged workers are not counted in the labor force and cause the participation rate to fall. OD. Discouraged workers are not counted in the labor force and cause the participation rate to rise.
2. The natural rate of unemployment Suppose that the markup of goods prices over marginal cost is 5%, and that the wage-setting equation is w - P(1 - u), where u is the unemployment rate. a. What is the real wage, as determined by the price-setting equation? b. What is the natural rate of unemployment? c. Suppose that the markup of prices over costs increases to 10%. What happens to the natural rate of unemployment? Explain the logic behind your answer.
The natural rate of unemployment is the estimated rate of unemployment that would prevail when unemployment is zero. Select one: a. seasonal O b. frictional c. cyclical Od. structural 4
10 DRAW A GRAPH. WITHOUT GRAPH THUMBS DOWN!Suppose the markup of goods prices over marginal cost is 2% and the wage-setting equation is W=P(1-u) with u being the unemployment rate.1. What is the Natural level on Unemployment?2. What is the real wage as determined by the price setting equation?3. If the markup increases to 2.5% due to an increase in the price of Oil what happens to the natural rate of employment? Explain briefly and graphically this change.