Sri-Kumar Says Low Wage Workers Challenge Yellen

The video discusses economic growth trends and the paradox of declining unemployment rates amidst weak growth. It highlights the limitations of the EU3 unemployment rate and the significance of the EU6 rate, which includes underemployed individuals. The labor force participation rate is declining, indicating slack in the economy, particularly among low-income workers. The shortage of high-skilled employees is contrasted with the dominance of low-income workers, posing challenges for policymakers like Janet Yellen.

What is the main paradox discussed in the first section regarding economic growth and unemployment?

• Both economic growth and unemployment are decreasing.

• Both economic growth and unemployment are increasing.

• Economic growth is weak, yet unemployment is decreasing.

• Economic growth is strong, but unemployment is rising.

What does the EU6 unemployment rate include that the EU3 rate does not?

• The underemployed and those who have left the workforce.

• The high-income earners.

• Only the employed individuals.

• Only the unemployed individuals.

What is a significant issue with the labor force participation rate discussed in the second section?

• It is not affected by economic changes.

• It is higher than ever before.

• It remains low compared to pre-crisis levels.

• It is increasing rapidly.

What does the term 'slack' refer to in the context of the economy?

• Excess demand for high-skilled workers.

• A balanced labor market.

• Surplus of low-income, low-skill workers.

• A shortage of all types of workers.

What challenge does Janet Yellen face according to the final section?

• Addressing the needs of the tech industry.

• Dealing with low-wage employment issues.

• Increasing the number of high-skilled workers.

• Focusing on high-income employment.