Suppose the working-age population is 150 million, the labor
force is 125 million, and employment is 120 million.
a) What
is the unemployment rate?
b) Now
suppose that 2 million students graduate from college and begin to look for
jobs. What is the new unemployment rate if none of the students have found jobs
yet?
c) Suppose
that all 2 million students find jobs. What is the unemployment rate now?
#Parkin #11edition #Unemployment #CPI
#Inflation #Chapter22
Answer:
ReplyDeletea) The unemployment rate is (5 million unemployed) ÷ (125 million labor force) × 100 = 4.0 percent.
b) The unemployment rate is (7 million unemployed) ÷ (127 million labor force) × 100 = 5.5 percent.
c) The unemployment rate is (5 million unemployed) ÷ (127 million labor force) × 100 = 3.9 percent.