Exam 30: Unemployment Fluctuations and the Nairu

The economy in the diagram below begins in long-run equilibrium at E₀. FIGURE 30-2 Refer to Figure 30-2.Suppose the economy is in a short-run equilibrium at after a negative aggregate supply shock.If the government's policy objective is to reduce unemployment,which of the following policies would be appropriate?

Suppose the Canadian government implements a new program to provide training to unemployed workers.The government is likely trying to reduce

The concept of "full employment" refers to a situation in which there exists

Many economists believe that the more strict rules for qualifying for employment-insurance benefits that were introduced by the federal government in the early 1990s led to

The table below shows real GDP,potential GDP and the unemployment rate for a hypothetical economy. TABLE 30-3 Refer to Table 30-3.In which years is this economy operating at full employment?

Another name for "frictional" unemployment is

One reason that economists are interested in the gross flows in the labour market as well as the stocks of unemployed is that examining the flows

The theory of "efficiency wages" provides

In macroeconomic models,the idea that NAIRU can be influenced by the actual rate of unemployment is referred to as

The economy in the diagram below begins in long-run equilibrium at E₀. FIGURE 30-2 Refer to Figure 30-2.Suppose the economy is in a recession at equilibrium E₁ that is very long lasting.As a result,many young workers are unable to enter the labour market for the first time and are unable to gain experience.These workers continue to have higher than average unemployment rates when the recession is over,causing the NAIRU to rise.This is an example of

Non-market-clearing theories of unemployment emphasize wage stickiness.Wage stickiness provides an important explanation for the existence of ________,which fluctuates inversely with real GDP.

The table below provides hypothetical unemployment,employment,and labour force data for an economy over a 3-month period. TABLE 30-2 Refer to Table 30-2.What is the unemployment rate on January 1?

If labour markets had perfectly flexible wages,as the market-clearing theories suggest,involuntary unemployment would

The labour market in the diagram below begins in equilibrium with a real wage of $10 and quantity employed of 1000. FIGURE 30-1 Refer to Figure 30-1.The economy begins with D₀ and S₀.Suppose there is a negative shock to the economy,which shifts the demand for labour curve to D₁.In the market-clearing theory of unemployment,

The table below shows the percentage of the labour force accounted for by males and females over a two-decade period.Assume that real GDP is equal to potential in each of the given years. % of Labour Force TABLE 30-4 Refer to Table 30-4.Suppose that for each year listed the unemployment rate among males is 5% while it is 7% among females.What is the economy's NAIRU in 1975?

Which of the following statements best explains why unemployment rates in European countries have tended to be higher than unemployment rates in Canada or the United States? (Note: this statement refers not to any current recession in Europe but to a longer-term average.)

Which of the following is a central argument of non-market-clearing theories of unemployment?

Consider Canada's employment insurance (EI)program,which provides benefits to eligible unemployed workers.If the program is designed such that benefits are more generous in regions with higher rates of unemployment,then we can expect that

An unemployed worker can be identified as being "structurally" unemployed if

Retaining a core group of experienced employees that feels entitled to some degree of job security requires that in a recession firms hold wages ________ the market-clearing level,thus ________ involuntary unemployment.