var imagesSmall = ",,,"; var imagesLarge = "kwmodsmacro3eupdates-numbered_fig-ch8_fig_1,kwmodsmacro3eupdates-numbered_fig-ch8_fig_2,kwmodsmacro3eupdates-numbered_fig-ch8_fig_3,kwmodsmacro3eupdates-numbered_fig-ch8_fig_4,kwmodsmacro3eupdates-numbered_fig-ch8_fig_5,kwmodsmacro3eupdates-numbered_fig-ch8_fig_7,kwmodsmacro3eupdates-numbered_fig-ch8_fig_9,kwmodsmacro3eupdates-numbered_fig-ch8_fig_10,kwmodsmacro3eupdates-numbered_fig-ch8_fig_11,kwmodsmacro3eupdates-numbered_fig-ch8_fig_12,kwmodsmacro3eupdates-numbered_fig-ch8_fig_13,"; var imagesXlarge = "kwmodsmacro3eupdates-unnumbered_fig-ch8_un_01,kwmodsmacro3eupdates-unnumbered_fig-ch8_un_03,,,,"; var imagesXXlarge = ",kwmodsmacro3eupdates-unnumbered_fig-ch8_un_03,,,,"; /** global comparison - move image out of box_inner**/ if ($('#kwmodsmacro3eupdates-ch8-box-21').length) { var $this = $('#kwmodsmacro3eupdates-ch8-box-21'); $("[data-block_type='fig_unnumbered']").each(function(index, element) { if ( $(element).attr('data-figure-id') == 'kwmodsmacro3eupdates-unnumbered_fig-ch8_un_03') { //alert (index + $(element).attr('data-figure-id')); fig_html = $(this).remove(); } }); var fig_html = '
The advent of websites that enable job-seekers to find jobs more quickly will reduce the unemployment rate over time. However, websites that induce discouraged workers to begin actively looking for work again will lead to an increase in the unemployment rate over time.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-1-2a'] = "Rosa is not counted as unemployed because she is not actively looking for work, but she is counted in broader measures of labor underutilization as a discouraged worker.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-1-2b'] = "Anthony is not counted as unemployed; he is considered employed because he has a job.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-1-2c'] = "Grace is unemployed; she is not working and is actively looking for work.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-1-2d'] = "Sergio is not unemployed, but underemployed; he is working part time for economic reasons. He is counted in broader measures of labor underutilization.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-1-2e'] = "Natasha is not unemployed, but she is a marginally attached worker. She is counted in broader measures of labor underutilization.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-1-3c'] = "Both parts a and b are consistent with the relationship, illustrated in Figure 8-5, between above-average or below-average growth in real GDP and changes in the unemployment rate: during years of above-average growth, the unemployment rate falls, and during years of below-average growth, the unemployment rate rises. However, part c is not consistent: it implies that a recession is associated with a fall in the unemployment rate, which is correct."; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-2-1a'] = "When the pace of technological advance quickens, there will be higher rates of job creation and destruction as old industries disappear and new ones emerge. As a result, frictional unemployment will be higher as workers leave jobs in declining industries in search of jobs in expanding industries.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-2-1b'] = "When the pace of technological advance quickens, there will be greater mismatch between the skills employees have and the skills employers are looking for, leading to higher structural unemployment.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-2-1c'] = "When the unemployment rate is low, frictional unemployment will account for a larger share of total unemployment because other sources of unemployment will be diminished. So the share of total unemployment composed of the frictionally unemployed will rise.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-2-2a'] = "A binding minimum wage represents a price floor below which wages cannot fall. As a result, actual wages cannot move toward equilibrium. So a minimum wage causes the quantity of labor supplied to exceed the quantity of labor demanded. Because this surplus of labor reflects unemployed workers, it affects the unemployment rate. Collective bargaining has a similar effect—unions are able to raise the wage above the equilibrium level to a level like WU in the accompanying diagram. This will act like a minimum wage by causing the number of job-seekers to be larger than the number of workers firms are willing to hire. Collective bargaining causes the unemployment rate to be higher than it otherwise would be, as shown in the accompanying diagram.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-2-3a'] = "An increase in unemployment benefits at the peak of the business cycle reduces the cost to individuals of being unemployed, causing them to spend more time searching for new jobs. So the natural rate of unemployment would increase.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-3-1a'] = "Shoe-leather costs as a result of inflation will be lower because it is now less costly for individuals to manage their assets in order to economize on their money holdings. This reduction in the costs associated with converting other assets into money translates into lower shoe-leather costs.
"; xBookUtils.showAnswers['kwmodsmacro3eupdates-cyu-8-3-2a'] = "If inflation came to an unexpected and complete stop over the next 15 or 20 years, the inflation rate would be zero, which of course is less than the expected inflation rate of 2% to 3%. Because the real interest rate is the nominal interest rate minus the inflation rate, the real interest rate on a loan would be higher than expected, and lenders would gain at the expense of borrowers. Borrowers would have to repay their loans with funds that have a higher real value than had been expected.
"; ////// disable links to chapter $("[data-target='_self']").each(function(index, element) { $(this).attr('data-type', 'txt'); $(this).css('pointer-events','none'); $(this).css('cursor','default'); //alert('[2]_self: ' + $(this).attr('data-type')); }); /*intro image*/ #manuscript #kwmodsmacro3eupdates-ch8-fig-1 img{ max-width: 685px; } #kwmodsmacro3eupdates-ch08-image-1{ max-width: 685px; }