Exam 30: Unemployment Fluctuations and the Nairu

The ongoing process of globalization of the world economy has an effect on the NAIRU in Canada.Choose the statement that best describes the likely effect.

Other things being equal,when changes in technology cause some industries to decline and other industries to expand the result is

Which of the following policies could the government implement to reduce frictional unemployment?

A good example of an outcome that could lead to ʺhysteresisʺ in the labour market 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 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?

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 E1 after a negative supply shock.Cyclical unemployment at E1 can be reduced by

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 E1 after a negative aggregate supply shock.If the governmentʹs policy objective is to reduce unemployment,which of the following policies would be appropriate?

The theory of ʺefficiency wagesʺ provides

Other things being equal,many economists believe that more generous employment-insurance benefits would

Technological changes over time caused workers who in the past produced such things as telephone books,video cassettes,or worked as travel agents to become ________ unemployed,at least until they could be re-employed in other industries.

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.Which of the following changes occurred in this economy between February 1 and March 1?

Market-clearing theories of the labour market feature ________ wages, and thus involuntary unemployment________.

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 March 1?

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.

Another name for ʺfrictionalʺ unemployment is

An unemployed worker can be identified as being ʺfrictionallyʺ unemployed if

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

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

Which of the following would be the most appropriate policy for reducing structural unemployment?