Question

The idea that the natural rate of unemployment is increased following extended periods of unemployment is...

The idea that the natural rate of unemployment is increased following extended periods of unemployment is called:

Group of answer choices

A)the Phillips curve.

B)the natural-rate hypothesis.

C)Okun's Law.

D)hysteresis.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: D. hysteresis

Explanation: Hysteresis unemployment is the period when the unemployment is accelerating and during this time period, more people are unemployed and this continues for a longer period of time. So, the technological change, industrial change, and restricting of the industry, unemployment due to job change, etc. will increase the unemployment and when the recession occurs during these periods, the unemployment will continue for extended period of time.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
It is estimated that the unemployment rate in the US economy has increased by approximately 20%...
It is estimated that the unemployment rate in the US economy has increased by approximately 20% in the past month. According to Okun's law %∆Y=3%-2×∆U the percentage change in GDP would be predicted to be ________ if the unemployment rate stayed that high for the rest of the year. Group of answer choices A)3.7 percent B)-3.7 percent C) -37 percent D)37 percent
Question) If the natural rate of unemployment falls, a. both the short-run Phillips curve and the...
Question) If the natural rate of unemployment falls, a. both the short-run Phillips curve and the long-run Phillips curve shift. b. only the short-run Phillips curve shifts. c. only the long-run Phillips curve shifts. d. neither the short-run nor the long-run Phillips curves shift. Question) If the long-run Phillips curve shifts to the right, then for any given rate of money growth and inflation the economy has a. higher unemployment and lower output. b. higher unemployment and higher output. c....
In 2008, the unemployment rate (u) was ten percent, and the natural rate of unemployment (nru)...
In 2008, the unemployment rate (u) was ten percent, and the natural rate of unemployment (nru) was six percent. Again using Okun's Law, what was the percentage GDP gap then? Show your computation. (ii) State your answer in words, comparing actual to potential output. (iii) What is the sign of the GDP gap then? (iv) Why is the sign of the GDP gap in 2008 the opposite of the sign of the current GDP gap? Explain.
Okun's law shows that when the unemployment rate is below the natural rate, A. inflation is...
Okun's law shows that when the unemployment rate is below the natural rate, A. inflation is higher than expected. B. inflation is lower than expected. . C. output is below potential. D. output is above potential Constant returns to scale implies that if N and K both increase by 3% that A. Output (Y) will increase by 3%. B. Y/N will increase by 3%. C. Y/N will increase by less than 3%. D. the capital-labor ratio will increase by 3%....
Suppose that in 2020, the natural rate of unemployment is 5% and the actual rate of...
Suppose that in 2020, the natural rate of unemployment is 5% and the actual rate of unemployment is also 5%. Also inflation equals 4% and people expect inflation to be 4% next year (and all years thereafter). Using the Phillips curve logic, suddenly there is a rise in aggregate demand (maybe due to a jump in investment or government spending, maybe a tax cut.) A. in the short run by 2021, what happens to inflation and unemployment ? Explain why...
A year ago, the unemployment rate (u) was 3.6 percent, and the natural rate of unemployment...
A year ago, the unemployment rate (u) was 3.6 percent, and the natural rate of unemployment (nru) was 4.6 percent. (1 point) (i) Again using Okun's Law, what was the percentage GDP gap then? Show your computation. (ii) State your answer in words, comparing actual to potential output. (iii) What is the sign of the GDP gap then? (iv) Why is the sign of the GDP gap a year ago the opposite of the sign of the current GDP gap?...
Suppose the natural rate of unemployment is 5%, with full-employment output of $7000. Use Okun's Law...
Suppose the natural rate of unemployment is 5%, with full-employment output of $7000. Use Okun's Law to calculate the level of national output if the employment rate is 7%.
Eurozone unemployment rose to 10.7 percent. At the same? time, Eurozone inflation unexpectedly rose to 2.7...
Eurozone unemployment rose to 10.7 percent. At the same? time, Eurozone inflation unexpectedly rose to 2.7 percent a?year, up from the previous? month's 2.6 percent a year. ?Source: Huffington Post?, March? 1, 2012 A very high unemployment rate can be accounted for by the Phillips curve model by all of the following except?_______. A. a movement down along the? short-run Phillips curve if there is no change in the natural unemployment rate B. a rightward shift of the? long-run Phillips...
In the economy of Orange this year, the natural rate of unemployment is 5% and the...
In the economy of Orange this year, the natural rate of unemployment is 5% and the expected inflation rate is 4%. Draw and clearly label a long run Phillips curve and a short run Phillips curve to show this situation. Be sure to label the axes. If asked for numerical answers, use the grid lines in the graph and round to the nearest .5.
The Long-Run Phillips Curve: The Natural Rate of Unemployment, based on the assumption of a vertical...
The Long-Run Phillips Curve: The Natural Rate of Unemployment, based on the assumption of a vertical long run aggregate supply curve.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT