Fill in the blanks to make the following statements correct. a. The NAIRU is composed of ____________

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Fill in the blanks to make the following statements correct.

a. The NAIRU is composed of ____________ unemployment and ________ unemployment. The NAIRU is always _________ than zero.

b. If there are 100 0 loggers in British Columbia who are unemployed, and 100 0 vacant positions for call-centre operators in New Brunswick, we say that this unemployment is ___________.

c. Suppose the NAIRU in June 201 5 was 6 .0 percent. If the actual unemployment rate was 8 .2 percent, we can conclude that ___________ percentage points are due to factors _________ and the remaining __________ percentage points are due to ___________ and factors.

d. Suppose the government increased the number of weeks that an unemployed worker can collect EI benefits from 12 weeks to 16 weeks. The NAIRU is likely to __________ because of an increase in the amount of ___________ unemployment.

e. Countries with greater labour-market flexibility are likely to have _______ unemployment rates than countries in which policies inhibit flexibility.

f. Cyclical unemployment can be reduced by closing \(\mathrm{a}(\mathrm{n}) \ldots\) ________ gap by using ________ and ________ policies.

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Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

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