Chapter 6, Unemployment and Inflation Video Solutions, Macroeconomics: Principles, Applications and Tools

Problem 1

Which of the following is not included in the labor force?
a. People who are employed.
b. People who do not have a job, but who are actively searching for one.
c. People who do not have jobs and do not want one.
d. The entire population is included in the labor force.

Kevin Simons

Numerade Educator

01:01

Problem 2

Individuals who have stopped looking for work because they became discouraged are not counted as unemployed in the traditional unemployment statistics. __________ (True/False)

Alejandro Ruiz

Numerade Educator

Problem 3

The labor force participation rate shows the percentage of the
a. labor force that has a job.
b. labor force that is unemployed.
c. relevant population that is employed.
d. relevant population that is in the labor force.

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00:43

Problem 4

What would happen to the measured unemployment rate if unemployed individuals left the labor force to enter a disability program?

Kaylee Mcclellan

Numerade Educator

00:49

Problem 5

Suppose the U.S. government hires workers who are currently unemployed but does not give them any work to do. What will happen to the measured U.S. unemployment rate? Under these circumstances, do changes in the measured U.S. unemployment rate accurately reflect changes in the underlying economic situation and production?

Alejandro Ruiz

Numerade Educator

02:07

Problem 6

Paul supports his wife and child through employment. He has decided to work as a blogger for an entertainment Web site. He would like to work 40 hours a week but is only offered 20 hours of work a week by his employer. Is Paul unemployed? Would he be counted as working part time for economic reasons?

Andrew Davis

Numerade Educator

01:19

Problem 7

Here are some data for the U.S. economy in January 2010:
236.8 million individuals 16 years of age and older
138.3 million employed
14.8 million unemployed
Calculate the labor force, the labor force participation rate, and the unemployment rate for the U.S. economy.

Doris Bennett

Numerade Educator

00:25

Problem 8

What factors might limit women's labor force participation relative to men? Are these factors that could change as social customs change?

Christopher Dzorkpata

Numerade Educator

02:12

Problem 9

Disability payments replace a higher fraction of the wages of low-wage workers than of high-wage workers. Overall, average disability payments rise with the average wage. Suppose wages of low-skilled workers fell sharply relative to high-wage workers. How would this affect the incentives to enter disability for low-wage workers?

Tristan Wille

Numerade Educator

02:10

Problem 10

Raw, unadjusted data show virtually every year that the number of unemployed rise in June. Why? Would this show up in seasonally adjusted data?

Natalie Britton

Numerade Educator

01:03

Problem 11

An economy has $100,000,000$ people employed, $8,000,000$ unemployed, and 4,000,000 marginally attached workers. What is the conventional measure of the unemployment rate? What would be the best alternative measure that takes into account marginally attached workers?

Xiaomin Bian

Numerade Educator

04:20

Problem 12

Japan was concerned about a group of workers called "NEETs," which meant "not in education, employment, or training." In the United States, we also have young, discouraged workers. Discuss the types of young, discouraged workers you would most likely find in the United States.

Oluwadamilola Ameobi

Numerade Educator