Chapter 21: Problem 15
What criteria do the BLS use to count someone as employed? As unemployed?
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These are the key concepts you need to understand to accurately answer the question.
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Chapter 21: Problem 15
What criteria do the BLS use to count someone as employed? As unemployed?
These are the key concepts you need to understand to accurately answer the question.
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Is a decrease in the unemployment rate necessarily a good thing for a nation? Explain.
While unemployment is highly negatively correlated with the level of economic activity, in the real world it responds with a lag. In other words, firms do not immediately lay off workers in response to a sales decline. They wait a while before responding. Similarly, firms do not immediately hire workers when sales pick up. What do you think accounts for the lag in response time?
Name and explain some of the reasons why wages are likely to be sticky, especially in downward adjustments.
Under what condition would a decrease in unemployment be bad for the economy?
Suppose the adult population over the age of 16 is 237.8 million and the labor force is 153.9 million (of whom 139.1 million are employed.). How many people are "not in the labor force?" What are the proportions of employed, unemployed and not in the labor force in the population? Hint: Proportions are percentages.
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