Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that the Republic of Economists (ROE) is a country with a population of 30,000 people. Of those 30,000 people, 20,000 of them are age

Suppose that the Republic of Economists (ROE) is a country with a population of 30,000 people. Of those 30,000 people, 20,000 of them are age 15 or older. You also know that in this economy there are 9,000 employed people and 1,000 unemployed people. Among the 1,000 unemployed workers, 250 of these workers are involved in job searches focused on locating jobs that are a good fit for their specific skills and talents. An additional 200 of these unemployed workers are searching for jobs in the market where there are few vacancies, at the prevailing wage rate, due to the type of job that is being sought. Assume that there are no seasonally unemployed workers in this economy. Given the above information, which of the following statements is true? a. 250 people are structurally unemployed in this country. b. None of the other answers are correct. c. The natural unemployment rate is less than 4%. d. The frictional unemployment rate is 2.5%. e. The cyclical unemployment rate is 5.8%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: N Gregory Mankiw

9th Edition

1464182892, 9781464182891

More Books

Students also viewed these Economics questions

Question

Resources are _________ used to produce goods and services.

Answered: 1 week ago

Question

Was there an interaction of history and treatment effects?

Answered: 1 week ago