Principles of Economics- Mankiw (5th) 565

Principles of Economics- Mankiw (5th) 565 - V ARIOUS D...

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CHAPTER 26 UNEMPLOYMENT AND ITS NATURAL RATE 583 natural rate is called cyclical unemployment. In the figure, the natural rate is shown as a horizontal line at 5.5 percent, which is a rough estimate of the natural rate for the U.S. economy during this period. Later in this book we discuss U NEMPLOYMENT L ABOR -F ORCE D EMOGRAPHIC G ROUP R ATE P ARTICIPATION R ATE A DULTS ( AGES 20 AND OVER ) White, male 3.2% 77.2% White, female 3.4 59.7 Black, male 7.4 72.5 Black, female 7.9 64.8 T EENAGERS ( AGES 16–19) White, male 14.1 56.6 White, female 10.9 55.4 Black, male 30.1 40.7 Black, female 25.3 42.5 S OURCE: Bureau of Labor Statistics. Table 26-1 T HE L ABOR -M ARKET E XPERIENCES OF
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Unformatted text preview: V ARIOUS D EMOGRAPHIC G ROUPS . This table shows the unemployment rate and the labor-force participation rate of various groups in the U.S. population for 1998. 10 8 6 4 2 1970 1975 1960 1965 1980 1985 1990 2000 Percent of Labor Force 1995 Natural rate of unemployment Unemployment rate Figure 26-2 U NEMPLOYMENT R ATE SINCE 1960. This graph uses annual data on the unemployment rate to show the fraction of the labor force without a job. Source: U.S. Department of Labor. cyclical unemployment the deviation of unemployment from its natural rate...
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