PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 4P
To determine
Describe the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In a given community, the unemployment rate is 4% and
their working-age population is 930,000. Labor force
participation was 81% in this community in December of
2009. In January 2010 a new social security policy was
implemented, allowing people to retire and collect their
social security benefits earlier than expected. 200
thousand older workers retired at the end of January due
to the new policy. Further, 2000 senior citizens that were
out of the labor force (in December) started collecting their
social security retirement benefits in January due to their
past contributions. What is the Unemployment rate in
February assuming everything else was fixed at their
December values?
In the country of Economica, the total labor force consists of 5,000 workers. 250 of these workers are unemployed, and
thus the current unemployment rate is 5.0%.
This year, 100 workers will lose their jobs, 85 workers will return to the labor force after an absence, 50 workers will
voluntarily leave their jobs, and 250 new workers will enter the labor force.
At the same time, 363 workers will find jobs, and 150 workers will retire or leave the labor force for other reasons.
Thus, at the end of the year, the labor force will consist of workers, and the unemployment rate will be%. (Round
your responses to one decimal place.)
In a given community, the unemployment rate is 5% and their working-age population is 4 Million. Labor force participation was 82% in this community in December of 2009. In January 2010 a new social security policy was implemented, allowing people to retire and collect their social security benefits earlier than expected. 200 thousand older workers retired at the end of January due to the new policy. Further, 2000 senior citizens that were out of the labor force(in December) started collecting their social security retirement benefits in January due to their past contributions. What is the Unemployment rate in February assuming everything else was fixed at their December values?
( Please round your answer to include 2 decimal places, do not include the percent sign in the answer. That is, If you find 8.33333% is the new unemployment rate, input your answer as 8.33)
Chapter 12 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
Knowledge Booster
Similar questions
- This question focuses on the labor market and unemployment using the most recent U.S. data. The adult population (N) of the U.S. is approximately 259 million. The labor force is approximately 162.5 million and the number of employed workers (E) is approximately 156.5 million. What is the unemployment rate? What is the labor force participation rate? Both are lower than 2010 U.S. values (u2010 = 9.6% and LFPR2010 = 64.9%) Give two plausible reasons why each labor market indicator is lower in 2018.arrow_forwardAccording to the Census Bureau, the US working-age population in July 2017 was around 326 million. At the same time, the labor force was 203.75 million, and the total number of people employed was 195 million. According to these numbers, the US labor-force participation rate and unemployment rate in July 2017 were: 62.5% and 2.7 % 95.7% and 2.7% 62.5% and 4.3 % 59.9% and 4.3 %arrow_forwardIn 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non- institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about 64.6% and 8.2%. 64.6% and 5.3%. 59.3% and 8.2%. 59.3% and 5.3%.arrow_forward
- The total adult, working-age population in January 2017 was 254.1 million. Out of this total population, 152.1 million were classified as employed, and 7.6 million were classified as unemployed. The remaining 94.4 million were classified as out of the labor force. As you will learn, however, this seemingly simple chart does not tell the whole story. Discuss what the unemployment rate is telling us. Explain what the unemployment rate does not tell us regarding the economy, or the health of the economy. What might we miss if we try to judge the economy based only on the unemployment rate?arrow_forwardConsider a hypothetical economy in which the labor force consists of 200 people. Of those, 180 people are employed full-time and 20 people are unemployed. The economy follows the same conventions as the U.S. Bureau of Labor Statistics (BLS) in computing its employment figures. Therefore, initially the unemployment rate is calculated as follows: Unemployment Rate Number of Unemployed People Number of People in the Labor Force х 100 20 х 100 200 = 10% Suppose a reduction in foreign demand for this economy's products causes an economic recession-a prolonged period of declining output. The following table offers two possible scenarios resulting from the recession. Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor market changes in this economy. Scenario Unemployment Rate A: Firms reduce work hours by 10%. The number of involuntary part-time workers rises % as firms respond to the reduction in the demand…arrow_forwardIn March, 2006 the labor department of the country of Jobland determined that the size of the labor force was 100 million out of which 96 million were employed. In May 2006, the labor department determined that 1.0 million people became "discouraged workers" in April. Assuming that no new jobs were created between March and April, calculate the unemployment rate for March and April. Jobland unemployment rate in March = percent. (Enter your response rounded to one decimal place.) Jobland unemployment rate in April = percent. (Enter your response rounded to one decimal place.)arrow_forward
- Susie is a 15-year-old who is looking to work as a babysitter. However, no one has hired her. How would the BLS classify Susie in the current population survey when measuring the unemployment rate? A) Susie would be considered unemployed B) Susie would not be considered part of the relevant population used to measure unemployment because only individuals who are 16 or older are included. C) Susie would be considered employed D) Susie would be considered as Not in the Labor Forcearrow_forwardThe three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify each person in the table as structurally, frictionally, or cyclically unemployed. Unemployment Type Kate just moved with her husband to Bismark, North Dakota. She's looking for a job as a judicial clerk. Hubert left his job as an electrician when his wife took a position in another region. The quantity of electrical services demanded is considerably lower in the new region, in part because of high union- negotiated wages. He would like to work at the high union wage but remains unemployed due to a lack of electrician jobs. A recent recession has reduced the number of visitors to a local water park. The park has had to lay off many of its employees, including Poornima. The following table presents data on frictional, cyclical, structural, and total unemployment for an economy. Rate Unemployment Type (Percent) 3.6 0.0 1.1 Frictional Cyclical Structural Total…arrow_forwardSuppose the number of employed people in Pakistan is 20.5 million. The unemployment rate in this economy is 8.8 percent, and the labor force participation rate is 65 percent. What is the size of the labor force and working-age population? How many people are unemployed? Explain and analyze different government policies which affect the unemployment rate in Pakistan? ( Maximum 200 words). Before June 2020, the labor market in Pakistan was at equilibrium with an equilibrium wage (WE) of Rs. 15,000 and equilibrium quantity of labor (LE) 10 million. In the last week of June, 2020, government of Pakistan imposed a minimum wage Act raising the minimum wage to Rs. 20,000. Using a graph, explain the effect of imposition of minimum wage on unemployment in labor market of Pakistan .arrow_forward
- Suppose the workingminus−age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have fullminus−time employment; 20 have partminus−time employment; 20 do not have employment, but are actively looking for employment; and 10 would like employment but do not have employment and are not actively looking for employment. The official unemployment rate as calculated by the U.S. Bureau of Labor would equal A. 30/80×100. B. 20/80×100. C. 20/100×100. D. 20/60×100.arrow_forwardA country with a civilian (work-eligible) population of 90,000 (all over age 16) has 70,000 employed and 10,000 unemployed persons. Of the unemployed, 5,000 are frictionally unemployed and another 3,000 are structurally unemployed. On the basis of these data, answer the following questions. What is the natural rate of unemployment for this country? Is this economy in recession or expansion? Explain.arrow_forwardAccording the U.S. labor statistics, roughly 5.8 million people were unemployed in 2006. Of these, 2.1 million were unemployed for less than 5 weeks, 1.7 million were unemployed for 5 to 14 weeks, 900,000 were unemployed for 15 to 26 weeks, and 1.1 million were unemployed for 27 or more weeks. Assume that the average spell of unemployment is 2.5 weeks for anyone unemployed for less than 5 weeks. Similarly, assume the average spell is 10 weeks, 20 weeks, and 35 weeks for the remaining categories. How many weeks did the average unemployed worker remain unemployed? Write your answer in millions of week (i.e. if your answer is 30,500,000 weeks, input 30.5 as the answer)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
