1.Suppose that 20,000 of the employed switches to jobs in the underground economy. when interviewed by Statin, 50% of these switches report that they are not workingand not seeking work, while the other 50% report that they are not working but seeking work. Explain what happens to the official unemployment rate an
1.Suppose that 20,000 of the employed switches to jobs in the underground economy. when interviewed by Statin, 50% of these switches report that they are not workingand not seeking work, while the other 50% report that they are not working but seeking work. Explain what happens to the official unemployment rate an
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 2P
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1.Suppose that 20,000 of the employed switches to jobs in the underground economy. when interviewed by Statin, 50% of these switches report that they are not workingand not seeking work, while the other 50% report that they are not working but seeking work. Explain what happens to the official
2. Illustrate and carefully explain the impact of an increasein the income tax rate from 25 percent to 35 percent on the demand for labour, supply of labour, equilibrium wage and level of employment.
Please see table below for information
987,156 currently working | 23,000 volunteer workers |
9845(ages 13-14) looking for work | 12,000 (ages 15)looking for work |
45,600 Part-time workers | 56 family workers who worked 15 hrs a week |
234 self-employed | 6543 discouraged workers |
67,432(ages 23-25)looking for work | 67,890 laid off receptionists looking for work |
544,321(ages 16-20) looking for work) | current population is 6,000,000 |
5654 Temp workers | 5000 armed forces |
543 recent university graduatesthat are going back to graduate school | 3500 institutionalized |
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