Answer to Question #72119 in Microeconomics for hanouf

Question #72119
''What is meant by the “natural rate of unemployment”? Using diagrams show what happens to the natural rate of unemployment if there is an increase in firms’ price mark up. What is the effect on the supply function?''
can anyone please show me how to draw the diagram because i'm really confused on what should i draw
1
Expert's answer
2017-12-25T05:11:14-0500
The natural rate of unemployment is a combination of frictional and structural unemployment that persists in an efficient, expanding economy when labor and resource markets are in equilibrium.
The increase in this rate decreases supply and vice versa.
Sources:
https://en.m.wikipedia.org/wiki/Natural_rate_of_unemployment

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS