Natural rate of employment normal rate of

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Natural rate of employment: Normal rate of unemployment, consisting of frictional & structural unemployment. rat i popul at i on Em pl oy m en t 100 popul at i on age - W ork i n g Em pl oy m en t - = ×
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Ex: unemployment caused by layoffs at Bank Of America = -structural: some had to leave financial sector to find new jobs -frictional= some found jobs at competing banks after brief period of search -cyclical = they were expected to find other jobs after the economic recovery strengthened. Explaining unemployment: GVT Policies and Unemployment Rate In USA, unemployed are eligible for unemployment insurance payments from GVT to help them maintained their income and spending & help reduce severity of recession (opportunity cost of continuing searching for a job = salary u are giving up at the job u could have taken) in Canada and countries of Western Europe opportunity cost of searching for jobs is lower unemployed search longer for jobs higer unemployment rates. Minimum wage law (lowest wage firms could pay workers is 7.25/hour) MW above market wage determined by demand and supply of labor labor supplied greater than qty demanded.
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

0/0 PREVIEWS LEFT
Sign up to access 24/7 study resources for your classes

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern