13.During the first three months of 2009, the number of American workers countedby the Bureau of Labor Statistics as being employed decreased by 2,451,000 (that is,by almost 2 1/2 million) yet, over the same period, the number of American workerscounted by the BLS as being unemployed increased by only 2,053,000 (that is, by justa little more than 2 million).(a) Explain briefly (no more than a sentence or two) how these two numbers can beconsistent with one another.(b) In light of the two statistics given above, would you say that the rise in theunemployment rate from 7.2 percent to 8.5 percent during the first three months of2009 overstates or understates the severity of the recession as felt by US workers?(c) If the US labor market begins to recover later this year, which would you expectto be larger in magnitude: the size of the increase in the number of workers whoare counted as employed or the size of the decrease in the number of workers whoare counted as unemployed?

Employment decreased by = 2,451,000 Unemployment increased = 2,053,000

13. During the first three months of 2009, the number of American workers counted by the Bureau of Labor Statistics as being employed decreased by 2,451,000 (that is, by almost 2 1/2 million) yet, over the same period, the number of American workers counted by the BLS as being unemployed increased by only 2,053,000 (that is, by just a little more than 2 million). (a) Explain briefly (no more than a sentence or two) how these two numbers can be consistent with one another.

13. During the first three months of 2009, the number of American workers counted by the Bureau of Labor Statistics as being employed decreased by 2,451,000 (that is, by almost 2 1/2 million) yet, over the same period, the number of American workers counted by the BLS as being unemployed increased by only 2,053,000 (that is, by just a little more than 2 million). (a) Explain briefly (no more than a sentence or two) how these two numbers can be consistent with one another.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Unemployment

Section: Chapter Questions

Problem 6PA

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