MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
10th Edition
ISBN: 9781319467203
Author: Mankiw
Publisher: MAC HIGHER
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Chapter 7, Problem 3PA
To determine
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According 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)
This question explores the calculation of the unemployment rate. You will be
provided some imperfect employment data for four different countries and asked to
identify the unemployment rate.
Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the
labor force and 65 are employed. What is the unemployment rate in Asartaland?
Task 2: The population of Millsville is 130. Of these 130 individuals, 90 are in the
labor force and 20 are unemployed. What is the unemployment rate in Millsville?
According to the most recent survey conducted by Statistics Bureau of Metropolis, currently there are 14 million people between the age of 15 and 64 living in the city. If the labour force participation rate in Metropolis is 65 percent and 8.5 million people currently have jobs, what is the rate of unemployment?
Options:
A) 3.7%
B) 7.8%
C) 6.6%
D) 11.4%
E) 12.9%
Show all working out and full explanations.
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- Suppose there are two major groups in the labor force, adults and teenagers, with adults divided into men and women. Teenagers account for 10% of the labor force, while adults account for 90%. Women make up 40% of the adult labor force. Suppose also that the unemployment rates for these groups are as follows: teenagers at 19%. men at 7%, and women at 6%. Calculate the overall unemployment rate in percent.arrow_forwardSuppose the economy is in a recession and the unemployment rate is exceptionally high. Show that a technological breakthrough that greatly increases labor productivity could help reduce the unemployment rate without hurting the standard of living of the average worker. (Use diagram and analysis, you only need to use the labor market here.)arrow_forwardIn which of the following cases will we observe unemployment? the quantity of labor demanded is greater than the quantity of labor supplied at the going wage rate. the wage is below the level that balances supply and demand for labor. there is a shortage of workers. the quantity of labor demanded is less than the quantity of labor supplied at the going wage rate.arrow_forward
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