A total of 8 Discussion Questions.
Very simple, easy, and straightforward.
Please respond thoroughly and in depth with complete paragraphs
1. (Measuring Unemployment) Determine the impact on each of the following if 2 million unemployed workers decide to return to school full time and stop looking for work:
- The labor force participation rate
- The size of the labor force
- The unemployment rate
2. (Types of Unemployment) Determine whether each of the following would be considered frictional, structural, seasonal, or cyclical unemployment:
- A UPS employee who was hired for the Christmas season is laid off after Christmas.
- A worker who is laid off due to reduced aggregate demand in the economy.
- A worker in a DVD rental store becomes unemployed as video-on-demand cable service becomes more popular.
- A new college graduate is looking for employment.
3. (Measuring Unemployment) Suppose that the U.S. noninstitutional adult population is 230 million and the labor force participation rate is 67 percent.
- What would be the size of the S. labor force?
- If 85 million adults are not working, what is the unemployment rate?
4. (Measuring Labor Productivity) How do we measure labor productivity? How do changes in labor productivity affect the U.S. standard of living?
5. (Technological Change and Unemployment) What are some examples, other than those given in the chapter, of technological change that has caused unemployment? And what are some examples of new technologies that have created jobs? How do you think you might measure the net impact of technological change on overall employment and GDP in the United States?
6. (Long-Term Productivity Growth) Suppose that two nations start out in 2016 with identical levels of output per work hour—say, $100 per hour. In the first nation, labor productivity grows by 1 percent per year. In the second, it grows by 2 percent per year. Use a calculator or a spreadsheet to determine how much output per hour each nation will be producing 20 years later, assuming that labor productivity growth rates do not change. Then, determine how much each will be producing per hour 100 years later. What do your results tell you about the effects of small differences in productivity growth rates?
7. (MPC and MPS) If consumption increases by $12 billion when real disposable income increases by $15 billion, what is the value of the MPC? What is the relationship between the MPC and the MPS? If the MPC increases, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?
8. (Consumption Function) How would an increase in each of the following affect the consumption function?
- Net taxes
- The interest rate
- Consumer optimism, or confidence
- The price level
- Consumers’ net wealth
- Disposable income