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Thursday, June 17, 2010

Macroeconomics question envolving unemployment and its natural rate?

Are the following workers more likely to experience short-term or long-term unemployment? Explain.



a. a construction worker laid off because of bad weather



b. a manufacturing worker who loses her job at a plant in an isolated area



c. a stagecoach-industry worker laid off because of competition from railroads



d. a short-order cook who loses his job when a new restaurant opens across the street



e. an expert welder with little formal education who loses her job when the company installs automatic welding machinery



Macroeconomics question envolving unemployment and its natural rate?care credit





a) short, weather gets good, back to work



b) long, few local jobs to replace lost job



c) long, not trained to move into the industry that is replacing his, also new industry needs fewer drivers



d) short, many restaurants around to get new job at



e) Sorry, don%26#039;t know much about wielding industry, the key may be that he is in a higher paying job but lacks the schooling to find a job that would pay him his reservation wage, long term

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