Author Question: Why is there unemployment even when the economy is at full employment? What will be an ideal ... (Read 96 times)

moongchi

  • Hero Member
  • *****
  • Posts: 516
Why is there unemployment even when the economy is at full employment?
 
  What will be an ideal response?

Question 2

On a time-series graph, time is typically shown
 
  A) as an area.
  B) along the x-axis.
  C) along the y-axis.
  D) as an implicit variable held constant.



T4T

  • Sr. Member
  • ****
  • Posts: 348
Answer to Question 1

There is unemployment even at full employment because there always will be unemployment. Unemployment is a natural occurrence in any economy with changes, such as high school or college graduates entering the labor force, or technological advances in one sector, or consumer preferences changing to favor one product over another. Frictional and structural unemployment will always exist. Cyclical unemployment, however, is a different matter. Cyclical unemployment does not seem to have the same degree of inevitability and hence full employment is defined as occurring when cyclical unemployment equals zero.

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

For a complete list of videos, visit our video library