Unemployment and Force Participation Rate

Decent Essays
Econ 1023 (FR05B) Assignment One Due January 23, 2013 1. Classify each of the following items as included or not included in GDP. Give an explanation for those that you judge as not included. State when applicable, the expenditure category in which each good is included. a. The purchase of copy paper by PepsiCo, which is used by the company staff. Answer: This case is not included in GDP, because it is an intermediate goods. b. The purchase of an electronic handheld organizer by a sales manager to keep track of clients. Answer: This case is included in GDP, because it belongs to Produced within a country. c. The purchase of a new helicopter by the Canadian military. Answer: This case is included in GDP, because…show more content…
Answer: the production decreased from $2625 to $2300. [($2625 $2300)/$2300] x 100= 14 percent g. Real GDP in 2001 and 2002. Answer: Real GDP in 2001 is 5. In the New Orleans metropolitan area in August 2005, the labour force was 634,512 and 35,222 people were unemployed. In September 2005 following Hurricane Katrina, the labour force fell by 156,518 and the number employed fell by 206,024. Calculate the unemployment rate in August 2005 and in September 2005. Answer: The unemployment rate is: (number of people unemployment / labour force) x100 Unemployment (August) 2005 = 35,222/634,512 ≈ 5.55% Employed (August) = 634,512-35,222 = 599,290 Labor force (September) = 634,512-156,518 = 477,994 Employed (September) = 599,290-206,024 = 393,266 Unemployed (September) = 477 '994-393 '266 = 84 '728 Unemployment (September) 2005= 84 '728/477 '994 ≈ 17.7% 6. Statistics Canada reported that in July 2000, the Canadian labour force was 15.95 million, Canadian employment was 14.87 million, and the Canadian working-age population was 24.31 million. Calculate for that month the Canadian labour force participation rate. Answer: The labour force participation rate is (Labour force/working age population) x100 (15.95/24.31) x100 =66 % 7 Unemployment Up, Even as Economy Sprouts New Jobs Canada’s unemployment rate edged up to 6.2 per cent
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