Answer to Question #208621 in Macroeconomics for BENSON

Question

I. Define and discuss the following terms (Hint: Give a graph or formula where applicable).

a) Unemployment

b) Labor Force

c) Adult Working Population

d) Okun’s Law

e) Minimum Wage

Answer 1

a) Unemployment

Is an economic situation where individuals who are employable and actively seeking a job remain jobless as they fail to secure a job

b) Labor Force

Is a term given to the number of people who are employed plus the unemployed who are looking for work

c) Adult Working Population

Is the number of people aged 15 to 64

d) Okun’s Law

Okun's law is the relationship between an economy's unemployment rate and its gross national product (GNP)

e) Minimum Wage

A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor