0
Sometimes at the beginning of an economic boom total employment increases sharply but the unemployment rate does not fall Why might this occur?
Wiki User
∙ 9y ago
An economic booms leads to more people entering the labor market, which is why employment can increase significantly, even if the unemployment rate overall does not fall. Wages typically increase during a boom.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Is it true during a recession demand for goods increases and employment rises?
Just the opposite happens. In a recession, unemployment increases and the demand for goods decreases.
Disadvantages of free trade?
increases competition increase unemployment economic restructuring increases competition increase unemployment economic restructuring
What happens when supply increases?
when the supply of a commodity increases but demand remains constant then price of the commodity falls which is called deflation with the result unemployment rises.on the other hand if supply rises and if demand also rises with same rate then this would have positive effect on the economy as the employment rises with out inflation.
Is it possible for the unemployment rate and employment to both go up?
Yes, it is possible. The unemployment rate is calculated by dividing the number of unemployed people by the number of people in the labor force. The labor force does not include people who are not actively looking for work because they are discouraged by the job market. If over the month, some of the unemployed get jobs, and some of those who were discouraged rejoin the labor force so that they get counted in the "unemployed", employment would go up and the unemployment rate could go up. It would depend on the net effect on the "unemployed" group - if there are more people who rejoin the labor force than those who move from "unemployed" to "employed" then the unemployment rate would go up while employment also increases.
To what extent is Philip curve relevant in morden economics?
in the short run, there is an inverse relationship between the rate of unemployment and the rate of inflation. In the long run it is nonexistent because employment will always be at full employment thus the only factors able to shift the Phillips curve left or right would be decreases or increases in LKT(labor, capital, technology.)
Is it true during a recession demand for goods increases and employment rises?
Just the opposite happens. In a recession, unemployment increases and the demand for goods decreases.
What happens to nominal wages as employment increases?
wages should increase as employment increases.
Disadvantages of free trade?
increases competition increase unemployment economic restructuring increases competition increase unemployment economic restructuring
Would a new tax on employment affect the number of unemplyed people?
YES! If you tax employment, then the employers can not afford the workers, so unemployment increases yet again.Not such Great job for Obama. Thanks for giving us all of that Hope and Change...
What impact do interest rates that are too high have on productivity and the unemployment?
productive decreases, unemployment rate increases
What happen to the people when the country is poor?
poverty and unemployment increases..
What impact do interest rates that are too high have on productivity and the unemployment rear?
productive decreases, unemployment rate increases
What happens when supply increases?
when the supply of a commodity increases but demand remains constant then price of the commodity falls which is called deflation with the result unemployment rises.on the other hand if supply rises and if demand also rises with same rate then this would have positive effect on the economy as the employment rises with out inflation.
How does war impact society for the better?
War increases demand on items so production and employment increases due to this demand. It offers opportunity for more employment.
As GDP increases on the horizontal axis of your aggregate supply aggregate demand graph what is happening to the rate of unemployment?
it increases
What of the following happens when unemployment increases during a recession?
There´s a depression
Is it possible for the unemployment rate and employment to both go up?
Yes, it is possible. The unemployment rate is calculated by dividing the number of unemployed people by the number of people in the labor force. The labor force does not include people who are not actively looking for work because they are discouraged by the job market. If over the month, some of the unemployed get jobs, and some of those who were discouraged rejoin the labor force so that they get counted in the "unemployed", employment would go up and the unemployment rate could go up. It would depend on the net effect on the "unemployed" group - if there are more people who rejoin the labor force than those who move from "unemployed" to "employed" then the unemployment rate would go up while employment also increases.
