Unemployment
EC4004 Lecture 7
Stephen Kinsella
www.stephenkinsella.net
Today
1. Recap
2. Capacity Utilisation
3. Unemployment
Unemployment
Ireland’s Employment Rate, 1997-2006
[Route] 66 is the path of a people in flight,
refugees from dust and shrinking land, from the
thunder of tractors and invasion, from the
twisting winds that howl up out of Texas, from
floods that bring no richness to the land and
steal what little richness is there."
––John Steinback, The Grapes of Wrath, Chapter 12, pg. 150
"On the highways the people moved like
ants and searched for work, for food. And
the anger began to ferment."
––Grapes of Wrath, Chapter 21, pg. 363
Equilibrium
086 399 83 06
The capital utilization rate is:
a.the rate capital wears out in a particular
period.
b.the percentage of capital used in
production.
c.the depreciation rate.
d. all of the above.
086 399 83 06
If the labour force is 100 million, there are
95 million people employed, there are 98
million jobs that employers want occupied,
then the unemployment rate is:
a.3%.
b.5.3%.
c.5%.
d.none of the above.
086 399 83 06
A decrease in workers’ effective real
incomes while unemployed will:
a. lower the job finding rate and raise the
expected duration of unemployment.
b. raise the job finding rate and lower the
expected duration of unemployment.
c. lower the job finding rate and the
expected duration of unemployment.
d. raise the job finding rate and the expected
duration of unemployment.
Next Time
Barro Chapters 10 &11