PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 12, Problem 4P
To determine
Describe the
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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)
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