/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q 22. What term describes the remainin... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 21: Q 22. (page 524)

What term describes the remaining level of unemployment that occurs even when the economy is healthy?

Short Answer

Expert verified

The natural level of unemployment describes this situation.

Step by step solution

01

Step 1. Definition

Frictional unemployment is the period when a worker is chosen to leave their job in search of the new one and the workers join the workforce for the first time.

Structural unemployment is a type of involuntary unemployment which is caused due to the mismatch between the workers and skills required and this is also called the skill gap.

02

Step 2. Explanation

When the economy is healthy and doing well the remaining level of unemployment is described by the natural level of unemployment.

03

Step 3. Natural rate of employment

The labor market is incomplete equilibrium when there is a natural level of unemployment and this occurs because of frictional and structural unemployment.

Even the fully developed economies also have a natural rate of unemployment because in an economy the workers may come and go and always look for a better job, the period in which the workers are looking for a job is called the natural level of unemployment.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

As the baby boom generation retires, the ratio of retirees to workers will increase noticeably. How will this affect the Social Security program? How will this affect the standard of living of the average American?

Over the long term, has the U.S. unemployment rate generally trended up, trended down, or remained at basically the same level?

Would you expect the natural rate of unemployment to remain the same within one country over the long run of several decades?

What criteria do the BLS use to count someone as

employed? As unemployed?

If you are out of school but working part-time, are you considered employed or unemployed in U.S. labor statistics? If you are a full-time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greeter at Wal-Mart are you considered employed or not in the labor force?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.