1 Introduction to Macroeconomics
2 Measuring the Macroeconomy
3 An Overview of Long-Run Economic Growth
4 A Model of Production
5 The Solow Growth Model
6 Growth and Ideas
7 The Labor Market, Wages, and Unemployment
8 Inflation
9 An Overview of the Short-Run Model
10 The IS Curve
11 Monetary Policy and the Phillips Curve
12 Stabilization Policy and the AS/AD Framework
13 The Global Financial Crisis: Overview
14 The Global Financial Crisis and the Short-Run Model
15 The Government and the Macroeconomy
16 International Trade
17 Exchange Rates and International Finance
18 Parting Thoughts

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Chapter 7: The Labor Market, Wages, and Unemployment

Review Questions

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  1. What explains the general rise in the employment-population ratio in the United States? By how much did the ratio decline around the last recession? How many jobs does this represent?

  1. What is the definition of the unemployment rate?

  1. What are some examples of changes in the economy that would cause the labor supply curve to shift? What might shift the labor demand curve? How do these changes affect the wage rate and the employmentpopulation ratio?

  1. What is the difference between the natural rate of unemployment and cyclical unemployment? How are these related to structural and frictional unemployment?

  1. Is the unemployment rate in Europe today higher or lower than in the United States? What about hours worked per person? What are some possible explanations for the differences?

  1. Give some examples of economic questions where the concept of present discounted value would be useful.

  1. In the last 50 years, both the fraction of hours worked by college graduates and the relative wage of college graduates have gone up. Why?



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