Macroeconomics 5th Edition by Olivier Blanchard

Exercise 7

Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly.
a. The change in employment and output per person in the United States since 1900 lends support to the argument that technological progress leads to a steady increase in employment.
b. Workers benefit equally from the process of creative destruction.
c. In the past two decades, the real wages of low-skill U.S. workers have declined relative to the real wages of high skill workers.
d. Technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity.
e. The "jobless recovery" after the recession of 2001 can be explained by unusually high productivity growth unaccompanied by a boom in aggregate demand.
f. The apparent decrease in the natural rate of unemployment in the United States in the second half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.
g. If we could stop technological progress, doing so would lead to a decrease in the natural rate of unemployment.