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Questions tagged [natural-rate-unemployment]

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How exactly does removing labor​ market rigidities reduce structural unemployment and increase potential output in an economy?

Here I want to focus primarily on the potential benefits of labor market reforms such as a reduction in job security and trade union power and not their controversies. I wish to learn a few thoroughly ...
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question regarding econometric testing of the natural rate hypothesis

Hi All: I have the Lucas, 1972b paper "Econometric Testing Of the Natural Rate Hypothesis" but unfortunately not as a pdf. ( it's from a book that contains a lot of Lucas' papers called "studies in ...
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Why is Canada's unemployment rate higher than that of the US, UK, Germany and the Netherlands?

Current unemployment rate in Canada is about 5.8% while countries such as the US, UK, Germany and the Netherlands have unemployment rates well below 5%. In addition, the current unemployment rate in ...
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Why does a reduction in regional differences in unemployment shift the Phillips curve?

According to this question below, apparently a reduction in the regional differences in the level of unemployment would shift the short run Phillips curve SRPC leftwards. The answer to the question is ...
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How to distinguish Full-time (FT) employment and Part-time (PT) employment when calculating employment rate?

Which of the following is true for the Canadian labour force data for June, 2015, for unemployment, Full-time (FT) employment, and Part-time (PT) employment? A) Unemployment fell because FT ...
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AS-AD model and labor force increase and natural rate of unemployment

I am trying to analyze the effects on the unemployment rate $u$ as the labor force $L$ increases, by use of the AS-AD model. I have however some issues I can't wrap my head around: If we increase ...
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Is 'full employment' synonymous with 'the natural rate of unemployment'?

Is the phrase 'full employment' synonymous with the phrase 'the natural rate of unemployment'? Parkin, et al. (2010) seem to use these two terms interchangably in chapter 20, but looking up these two ...
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Right definition of natural rate of unemployment?

Earlier I studied macroeconomics from Blanchard. But now while reading Mankiw's Macroeconomics I found different definition for natural rate of unemployment. According to Blanchard, "the rate of ...
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Has the natural rate of unemployment decreased with modern travel and the Internet?

The natural rate of unemployment is a combination of structural unemployment and frictional unemployment. Structural unemployment is caused by a surplus of labor at a given wage in a given area. ...