For most years since 1980, the natural unemployment rate was higher in Canada than in the United States. What possible explanation for some of this difference has been suggested?
What will be an ideal response?
Quite likely unemployment benefits are at least part of the reason why the natural unemployment rate has been higher in Canada than in the United States. Canada has more generous and more widely available unemployment benefits than the does the United States. This difference gives workers in Canada the incentive to search longer for jobs, which raises the natural unemployment rate in Canada.
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The labor force participation rate includes
A) only those employed but looking for a job. B) both employed workers and discouraged workers not seeking jobs. C) both employed workers and those unemployed but seeking employment. D) only those who are employed.
One reason unions might support an increase in the minimum wage is because such a policy would cause a leftward shift in the demand curve for union labor
Indicate whether the statement is true or false