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.
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If the actual reserve/deposit ratio equals 8% and the desired reserve/deposit ratio for this bank is 10%, the bank should:
A. send the extra reserves to the central bank. B. stop making loans. C. make more loans in order to earn interest. D. do nothing because this is a profitable situation.
When there are sustained increases in real GDP over time, we say that the economy is undergoing
A) a recession. B) economic growth. C) massive changes in productive capacity. D) economic stagnation.
The currency adopted by most countries in Western Europe is referred to as the
A) euro. B) pound. C) Eurodollar. D) yen.
Refer to Figure 15-3. Suppose the monopolist represented in the diagram above produces positive output. What is the price charged at the profit-maximizing/loss-minimizing output level?
A) $38 B) $54 C) $68 D) $75