What happens to unemployment rate after a recession?
After a recession, the unemployment rate will go down.
What is the difference between the unemployment rate in The Great Depression and the current recession?
When real GDP declines during a recession what typically happens to consumption investment and the unemployment rate?
The Official Unemployment rate (U-3) in US for August 2011 was 9.1. Below are the other unemployment rates in US for August 2011 : U-1 Unemployment rate : 5.4 U-2 Unemployment rate : 5.3 U-3 Unemployment rate : 9.1 U-4 Unemployment rate : 9.7 U-5 Unemployment rate : 10.6 U-6 Unemployment rate : 16.2
An economic recession is a slowdown in economic activity characterized by less consumer spending and often also by higher unemployment. Generally accepted indicators of a recession are usually a decline of Gross Domestic Product for two consecutive quarters and a sudden increase by 2 percent or more in the unemployment rate. However, since it takes a significant time to compile and verify the economic data, a recession may be well underway or even over when…
Natural Rate of Unemployment -The natural rate of unemployment is unemployment that does not go away on its own even in the long run. -It is the amount of unemployment that the economy normally experiences.Cyclical Unemployment -Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate. -It is associated with with short-term ups and downs of the business cycle.
There are 5 different types of unemployment: Frictional, Seasonal, Cyclical, Hardcore (or longterm) and Structural. The only type of unemployment that can be fixed or conrolled is Cyclical unemployment, due to fluctuations or recession in the business cyle. Cyclical unemployment causes employers to cut down workers, due to cost cuttings because there is a recession. Everything else is natural.
An interesting question is--why is the moon receding? It is "falling up." Where does the energy for that come from? It comes from tidal friction with the earth. What this means is that the sun recedes through robbing earth's angular momentum. What happens is the earth's rotation slows. It is expected that the lunar recession rate should slow--it is unlikely the moon will escape the earth. The current recession rate is about 3.8 cm (1.5…
The natural rate of unemployment is the rate that holds over the long-run in equilibrium. In Classical economics, this rate is 0%. With other assumptions, such as frictional and structural unemployment, you will get a natural unemployment rate above 0%. Source: http://www.transtutors.com/homework-help/macro-economics/unemployment/full-employment/