A country with a civilian population of 120,000 (all over age 16) has 100,000 employed and 10,000 unemployed persons, of which 5,000 are frictionally unemployed and another 3,000 structurally unemployed
a. What is the size of the labor force?
b. What is the actual unemployment rate?
c. What is the labor force participation rate?
d. What is the employment/population ratio?
e. What is the natural rate of unemployment?
f. Is this economy in a recession or a boom? Explain.
a. 110,000
b. 9.09 percent
c. 91.67 percent
d. 83.3 percent
e. 7.3 percent
f. The economy is in a recession because actual unemployment is above the natural rate.
You might also like to view...
What is the relationship between marginal product and average product?
What will be an ideal response?
If future price changes were perfectly anticipated by both borrowers and lenders, then _____
a. the expected real interest rate would be higher than the actual rate b. the expected real interest rate would lower than the actual rate c. the real interest rate in the future would decrease by the amount of the price increase d. the real interest rate in the future would increase by the amount of the price increase e. the real interest rate in the future would remain unchanged