15. Suppose the number of employed people in an economyis 121,166,640. The unemployment rate in this economy is10.4 percent, or .104, and the labor force participation rate is72.5 percent, or .725.a. What is the size of the labor force?MOTTARAb. How many people are unemployed?c. What is the size of the working-age population?16. On average, nations in Europe pay higher unemploymentbenefits for longer periods of time than does the United States.How do you suppose this would impact the unemploymentrates in these nations? Explain which type of unemploymentyou think is most directly affected by the size and duration ofunemployment benefits.CHAPTER 7 Unemployment, Inflation, and Long-Run Growth labor force participation rate:a. The federal minimum wage is raised to $12.50 per hour.b. The minimum legal working age is raised from 16 to 18.c. The economy is in the midst of a prolonged recession.d. The federal government imposes a legal retirement agee. The federal government increases the minimum age require-ment for collecting Social Security benefits.of 65.5. Suppose all wages, salaries, welfare benefits, and other sourcesof income were indexed to inflation. Would inflation still beconsidered a problem? Why or why not?Duatice on h 1671 According to7 Unemployment, Inflation, and Long-Run Growth

Answering the fifth question as it was asked by you.

Answered: 5. Suppose all wages, salaries, welfare…

5. Suppose all wages, salaries, welfare benefits, and other sources of income were indexed to inflation. Would inflation still be considered a problem? Why or why not? 7 A ccording to

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 47P: A group of 10 people have the following annual incomes:...

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Question

15. Suppose the number of employed people in an economy
is 121,166,640. The unemployment rate in this economy is
10.4 percent, or .104, and the labor force participation rate is
72.5 percent, or .725.
a. What is the size of the labor force?
MOTTARA
b. How many people are unemployed?
c. What is the size of the working-age population?
16. On average, nations in Europe pay higher unemployment
benefits for longer periods of time than does the United States.
How do you suppose this would impact the unemployment
rates in these nations? Explain which type of unemployment
you think is most directly affected by the size and duration of
unemployment benefits.
CHAPTER 7 Unemployment, Inflation, and Long-Run Growth

labor force participation rate:
a. The federal minimum wage is raised to $12.50 per hour.
b. The minimum legal working age is raised from 16 to 18.
c. The economy is in the midst of a prolonged recession.
d. The federal government imposes a legal retirement age
e. The federal government increases the minimum age require-
ment for collecting Social Security benefits.
of 65.
5. Suppose all wages, salaries, welfare benefits, and other sources
of income were indexed to inflation. Would inflation still be
considered a problem? Why or why not?
Duatice on h 1671 According to
7 Unemployment, Inflation, and Long-Run Growth

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