Exam 9: Unemployment and Its Natural Rate

Suppose that in some country neither textile workers nor shoemakers are unionized.If textile workers unionize and so are able to raise their wages,what will most likely happen to shoemakers?

Someone who is without work but is not looking for work would be counted as unemployed.

What will an efficient wage most likely do?

Table 9-1 This table shows the 2013 data for males and females aged 15 and over in the country of Bolivar. -Refer to the Table 9-1.What is the adult labour-force participation rate in Bolivar?

What does cyclical unemployment refer to?

In Canada,about what fraction of the time do spells of unemployment end with the person leaving the labour force?

Efficiency wages create structural unemployment.

Who would be included in the labour force?

Matt loses his job in April and decides play golf for a few months.Assuming that other things remain the same,what happens to the unemployment rate?

If the minimum wage was currently above the equilibrium wage,what would a decrease in the minimum wage do to the quantity demanded and quantity supplied of labour?

Since 1951,what has happened to the labour-force participation rate of men and women?

What is most likely to cause frictional unemployment?

What was the purpose of Canada's Public Service Staff Relations Act of 1967?

In a year when net employment growth is zero,approximately how many employees are moving from failing to growing firms?

Consider an economy where population increases,which in turn causes both the demand for goods and services and the supply of labour to increase. a.In a labour supply and demand diagram,analyze the effects of the increase in population on the equilibrium wage and employment. b.What happens to wage and unemployment if a minimum-wage law exists?

The unemployment rate reported by Statistics Canada clearly understates the true unemployment rate.

In 2009,Canada was in a serious recession.By 2013,Canada was experiencing a strong economic recovery.How did employment growth and gross job creation compare between 2009 and 2013?

Which cause of unemployment is associated with a wage rate above the market equilibrium level?

What led to the decrease in labour-force participation rates among Canadian men since World War II?

A minimum wage above equilibrium creates a labour surplus.