Topic 7

Why doesn't the minimum job proposal procide output directly useful to the market place?

if it did, it might be reolacing jobs otherwise provided by the market

it can be argued that the minimum jobs proposal is preferrable to a minimum wage law because

it puts a floor in the wage as well as on the nature of the job

The target rate of unemployment can't be affected by

level of output

Why does the minimum job pay a max of 10 dollars an hour?

to limit the number of people who participate

Okuun's rule of thumb

1 percentage point rise in unemployment rate will tend to be associated with a 2 percent fall in output from it's trend and vice versa

Which of the following groups tend to have the highest unemployment rates

CMONBRUH

Over the past several years, the target rate of unemployment gas risen. What would not explain this?

Congress passed a bill thst requires the target rate to rise along with rising government deficits

Why didn't unemployment rise during the 2000s even though the economy faced more and more globalization?

The government ran policies that created jobs in the non-tradeable sector

Structural unemployment:

cannot be reduced with demand side policies

Which group would be eligible for the author's job program?

non students

The job program suggested by the author was put forward in order to:

provide a middle ground approach to solving the unemployment problem

In the U.S. potential output in the long run tends to

rise at a trend rate of 2.5 to 3.5 percent per year