(1 paragraph) Has the U.S. economy achieved approximate full employment yet? Explain how
we define ‘full employment’ and how you can tell whether or not that goal has been achieved.
Use appropriate data to support your answer (see below). Be sure to cite the sources of your data
in your essay.
• Use the Bureau of Labor Statistics website (bls.gov) to find the most recent estimate of
the actual unemployment rate. (See the column on the bottom-right side of the BLS
homepage labeled ‘LATEST NUMBERS.’
• Use the Federal Reserve Bank of St. Louis’ estimate of the Natural Rate of
Unemployment (short-term) at http://research.stlouisfed.org/fred2/series/NROUST Drag
your cursor across the graph to find the estimate of the natural rate of unemployment for
the same period as the actual unemployment rate you reported above. For example, if the
latest unemployment rate is for January of 2020, you would look for the natural rate of
unemployment in the first quarter of 2020. (The natural rate graph shows estimates of the
natural rate from 1950 to 2029).
(1-3 paragraphs) Read the Introduction (the first three pages of the pdf) of the article “A
Search and Matching Approach to Labor Markets: Did the Natural Rate of Unemployment
Rise?” by Mary C. Daly, Bart Hobijn, Aysegul Sahin, and Robert G. Vallet. How do the authors
explain the increase in the Natural Rate of Unemployment during and after the financial crisis
(from 2007 to 2012)?
