Questiona consider the following flows in thousand of

Reference no: EM13375872

Question:

a) Consider the following flows (in thousand of people) between the various labour market states in a particular month:

UE = 240 000; UNLF = 180 000; EU = 190 000; NLFU = 220 000; ENLF = 280 000; NLFE = 250 000, where U indicates the state of unemployment, E the state of employment and NLF being not in the labour force.

(i) What is the change in the number of unemployed people in this particular month?

(ii) What is the change in the number of employed people in the same period?

b) A recession in the United States will negatively affect exports of Canadian manufacturing industries to the U.S.

(i) Show graphically in a labour market diagram the likely effect on unemployment in Canada. In your graph start out with a labour market initially in equilibrium.

(ii) Which of the inflows into and outflows from unemployment will be most affected by the decline of manufacturing industries?

c) Three indicators are commonly used to describe the state of the labour market and changes in the labour market in terms of a growing slack or tightening: the employment (E) to working age population (P) ratio (E/P); the labour force (L) participation rate (L/P) and the unemployment (U) rate (U/L). The interrelationship between these three indicators is given by the following identity:

E/P = L/P (1 - U/L).

Using the three indicators in this identity

(i) show a condition under which the labour market unambiguously has improved;

(ii) show a condition under which the labour market has unambiguously deteriorated.

Reference no: EM13375872

Questions Cloud

1 if there are diminishing returns to the variable input : 1. if there are diminishing returns to the variable input will average variable cost necessarily increase with increase

A how would a regular lm curve be affected if the private : a how would a regular lm curve be affected if the private sector demand for money balances increased following

A in a recent study of new york taxi drivers who choose : a in a recent study of new york taxi drivers who choose their own work hours and who experienced two permanent fare

A assume that the consumer price indexnbsp cpi for the : a assume that the consumer price indexnbsp cpi for the period 2004 -2008 has the following valuesnbspnbspnbspnbsp

Questiona consider the following flows in thousand of : questiona consider the following flows in thousand of people between the various labour market states in a particular

1 consider the production function y min x1 x2 a is this : 1. consider the production function y min x1 x2 a. is this production function strictly concave?b. does this

1 which of the following is not a topic studied in : 1. which of the following is not a topic studied in macroeconomics? gross domestic product the unemployment rate the

1 a taxicab company maintained accurate records of the : 1. a taxicab company maintained accurate records of the expenses for one of its automobiles from january 1 1996

Question 1use the information on the kumquat market in the : question 1use the information on the kumquat market in the table to answer the following questions.a. what are the

User Account

All Pages