Suppose the working-age population is 150 million, the labor force is 125 million, and employment is 120 million
a. What is the unemployment rate?
b. Now suppose that 2 million students graduate from college and begin to look for jobs. What is the new unemployment rate if none of the students have found jobs yet?
c. Suppose that all 2 million students find jobs. What is the unemployment rate now?
a. The unemployment rate is (5 million unemployed ÷ 125 million labor force) × 100 = 4.0 percent.
b. The unemployment rate is (7 million unemployed ÷ 127 million labor force) × 100 = 5.5 percent.
c. The unemployment rate is (5 million unemployed ÷ 127 million labor force) × 100 = 3.9 percent.
You might also like to view...
Contractionary fiscal policy will lead to a(n)
A) decrease in the supply of dollars in the foreign exchange market. B) fall in interest rates. C) increase in the demand for dollars in the foreign exchange market. D) reduction in exports.
If there are significant external benefits associated with the consumption of a product, it can be said that the private benefit to the consumer ____ the relative importance of this product to society and output should ____ to move toward the efficient situation
a. overstates; increase b. understates; increase c. overstates; decrease d. understates; decrease