Assume you have the following information about an economy: Labor Force of an Economy Population over age 14 Labor force Not in the labor force Employed Unemployed Number of People (nillions) 243.0 153.6 90.2 9.4 Instructions: Round your answers to two decimal places. a. What is the unemployment rate in this economy? b. What is the labor force participation rate? c. Assume that 0.9 million discouraged workers decide to start looking for work again, thereby increasing the number of officiaty unemployed workers by 0.9 million. What is the unemployment rate now? d. What is the new labor force participation rate?

Assume you have the following information about an economy: Labor Force of an Economy Population over age 14 Labor force Not in the labor force Employed Unemployed Number of People (nillions) 243.0 153.6 90.2 9.4 Instructions: Round your answers to two decimal places. a. What is the unemployment rate in this economy? b. What is the labor force participation rate? c. Assume that 0.9 million discouraged workers decide to start looking for work again, thereby increasing the number of officiaty unemployed workers by 0.9 million. What is the unemployment rate now? d. What is the new labor force participation rate?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 11RQ: If you an? out of school but working part time, are you considered employed or unemployed in U.S....

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If you an? out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greater at Wal-Mart are you considered employed or not in the labor force?
Are U.S. unemployment rates distributed evenly across the population?
While unemployment is highly negatively correlated with the level of economic activity, in the real world it responds with a lag. In other wands, firms do not immediately lay off workers in response to a sales decline. They wait a while before responding. Similarly, firms do not immediately hire workers when sales pick up. What do you think accounts for the lag in response time?
Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder than in many other countries?
Over the last century, during what periods was the U.S. inflation late highest and lowest?
Columns 1 and3 in the table below show employment and the price level in the economy. Aasume that the labour foroe in the economy is 11.0 milion. Compute and enter in column 2 the unemployment rate at each level of employment. For nach row (xcopt the first), compute and enter in column 4 the annual rate of intation. (Round your answers to hwo decmal places) Employment (milions of workers) Price Rate of Infation Lhemployment Rate (%) Level () 9.5 1.2 9.6 1.28 9.7 1.37 9.8 1.48 1.62 10 1.79 10.1 201 10.2 23
Between January 20JO and Janual'}• 2016, U.S.employment increased by 12.1 million workers, butthe number ol unemployed workers declined by mlly7.3 million. How are these numbers ronsistent witheach other? V.'hy might one expect a reduction in thenumber of people rounted as unemployed lo be smaUerthan the increase in the number of people employed?
Between January 2012 and January 2019,U.S. employment increased by 17.3 million workers,but the number of unemployed workers declined byonly 6.3 million. How are these numbers consistentwith each other? Why might one expect a reductionin the number of people counted as unemployed tobe smaller than the increase in the number of peopleemployed?
Are the following workers more likely toexperience short-term unemployment or long-termunemployment? Explain.a. a construction worker who is laid off because ofbad weatherb. a manufacturing worker who loses his job at aplant in an isolated areac. a stagecoach-industry worker who is laid offbecause of competition from railroadsd. a short-order cook who loses his job when a newrestaurant opens across the streete. an expert welder with little formal education wholoses his job when the company installs automaticwelding machinery
23 Ofal unempyt rtetatiies mi a everstate the antf unyleymet by incleding partime workers inthe cal hi understale the a f unmployt by echaing pei worken in the tio to enentate the ant of unmplet becae of the prence of "d ed workes whe wm actively weking emplyment. di understate the amot of unemployt hecae of he prenee of raged" wke whe are ttively seking emleymt.
How would an increase in the world price of oil affect the amount oI fricnal unemployment? Is this unemployment undesirable? What publicpolicies mighIt affect the amoufll of unemployment caused by this price change?
The labor-force participation rate measures the percentage of the Selectati rdspunsul corect Oa labor force that is either employed or unemployed O b. lulal atull populatiun thel is ermpluyed. O. total odult population that is in the labor force. d. lelbor force that is employed. Inflation tends to hurt people most if they: Scleclali ráspursul coxt: O a. sell goods whose prices rise faster than average. O b. adjust their incomes for changes in the interest rate. O. receive money incorme that doesn't rise as fast as prices. have a lot of debts.