Refer to the Article Summary. Explain how the declining labor force could have led to the decrease in the unemployment rate
What will be an ideal response?
The labor force is calculated as the sum of employed workers and unemployed workers in the economy. If the labor force is declining and, simultaneously, the unemployment rate is falling, the number of people in the labor force classified as unemployed workers must be decreasing, as is indicated in the article by the aging population and increasing retirement for the baby boomers.
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Refer to Figure 12.2. Suppose the economy is initially above potential GDP, and the actual inflation rate is greater than the expected inflation rate. If the Fed wants to achieve the goal of price stability, this would be represented by a
A) shift from IS1 to IS2. B) shift from IS2 to IS1. C) shift from MP1 to MP2. D) shift from MP2 to MP1.
If Apple's iTunes Music Store increases its "fee" for its music downloads, the law of demand predicts that
A) the number of iTunes music downloads would increase. B) there would be no change in the demand for iTunes music downloads. C) the number of iTunes music downloads would decrease. D) iTunes music supply would change but demand would not.