978-1259663048 Chapter 33 Solutions Manual

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CHAPTER 33: JOBS AND UNEMPLOYMENT

Questions and Exercises

1. The duration of unemployment rose in the 2008/09 recession. The likely cause

2. The rise in the duration of unemployment suggests that this most recent recession

3. Okun’s rule of thumb states that a 1 percentage point rise in the unemployment

4. a. Cyclical.

5. The reservation wage is the wage a person requires before accepting a job. The

6. Four reasons are that (1) the population has become younger, (2) more women

7. The concept of unemployment is normative because some people view

8. A person who believes unemployment is an individual’s responsibility will believe

9. Not necessarily, although it could. It depends on the degree to which college

10. Any jobs program will impose some cost to society. One cost that any program

11. The jobs proposal provides a safety net to those people who really want to work

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12. The guaranteed jobs program would be more expensive if it provided jobs useful

13. Limiting eligibility reduce the cost of the program. Students are a target for

Questions from Alternative Perspectives

1. Radical

a. The answer depends on normative judgments and cannot be answered based on

b. Achieving a low unemployment is desirable for the reasons that Vickrey states,

c. Some version of the guaranteed jobs program suggested in the text is the best

2. Feminist

Women tend to have greater burdens within the household, which means that they

3. Post-Keynesian

a. This is a normative question that has no answer based on positive economic

any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

b. As I stated above I do not consider the global distribution of income fair. By

4. Religious

Yes, I believe it would. If the level of savings influences the level output which

influences the level of consumption and investment, the paradox of thrift is possible

Issues to Ponder

1. The answer to this question will depend on the student. Not having any income is

a significant incentive to find or create a job. Presumably someone who is taking

2. This is a matter of judgment about government and individual responsibility, and

judgments differ. Some argue that society owes everyone a job who wants one

3. What programs a government can do to lower structural unemployment is up to

4. The nature of the guaranteed jobs program for many people will be too focused

5. By reducing the “work requirement, the program could be made more appropriate

any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.