Macroeconomics 5th Edition by Olivier Blanchard

Exercise 5

Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly.
a. Since 1950, the participation rate in the United States has remained roughly constant at 60%.
b. Each month, the flows into and out of employment are very small compared to the size of the labor force.
c. Fewer than 10% of all unemployed workers exit the unemployment pool each year.
d. The unemployment rate tends to be high in recessions and low in expansions.
e. Most workers are typically paid their reservation wage.
f. Workers who do not belong to unions have no bargaining power.
g. It may be in the best interest of employers to pay wages higher than their workers' reservation wage. h. The natural rate of unemployment is unaffected by policy changes.