8. The table below lists some events. You probably have an opinion on whether each event is good orbad. For each one determine how it would impact the UE rate, the EPR (employment-population ratio),and the LFPR (labor force participation rate) and then answer the questions below the table. It isimportant that you don't extrapolate behind what is described in the table, e.g. if it says some peoplelose their jobs and look for work don't assume any of them found a job yet.LFPRUE rateEPRBU goes bankrupt and lays off half the faculty.They immediately start looking for new jobsSome people decide to leave their jobs in order tostudy full-time in preparation for new careers.Many unemployed people leave the labor forceand apply for Social Security disability insurancepayments.

Answered: 8. The table below lists some events.…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 11RQ: If you an? out of school but working part time, are you considered employed or unemployed in U.S....

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Question

8. The table below lists some events. You probably have an opinion on whether each event is good or
bad. For each one determine how it would impact the UE rate, the EPR (employment-population ratio),
and the LFPR (labor force participation rate) and then answer the questions below the table. It is
important that you don't extrapolate behind what is described in the table, e.g. if it says some people
lose their jobs and look for work don't assume any of them found a job yet.
LFPR
UE rate
EPR
BU goes bankrupt and lays off half the faculty.
They immediately start looking for new jobs
Some people decide to leave their jobs in order to
study full-time in preparation for new careers.
Many unemployed people leave the labor force
and apply for Social Security disability insurance
payments.

Expert Solution

Step 1

Answer:

UE rate (unemployment rate): it refers to the ratio of the unemployed population to the total labor force.

$U E r a t e (u n e m p l o y m e n t r a t e) = \frac{U n e m p l o y e d p o p u l a t i o n}{L a b o r f o r c e} \times 100 N o t e : L a b o r f o r c e = u n e m p l o y e d + e m p l o y e d$

EPR (employment to population ratio): it refers to the ratio of employed population to the total working-age population.

$E P R = \frac{E m p l o y e d}{W o r k i n g - a g e p o p u l a t i o n} \times 100$

LFPR (labor force participation rate): it refers to the ratio of the labor force to the total working-age population.

$L F P R = \frac{L a b o r f o r c e}{W o r k i n g - a g e p o p u l a t i o n} \times 100$

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