Suppose the unemployment rate in the United States goes from 6.4% in one year to 5.6% in the next. (i) What is the percentage point decrease in the unemployment rate? (ii) By what percentage has the unemployment rate fallen?

Suppose the unemployment rate in the United States goes from 6.4% in one year to 5.6% in the next. (i) What is the percentage point decrease in the unemployment rate? (ii) By what percentage has the unemployment rate fallen?

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 2SCQ: Using the above data, what is the unemployment rate? These data are U.S. statistics from 2010. How...

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Question

Suppose the unemployment rate in the United States goes from 6.4% in one year to 5.6% in the next.

(i) What is the percentage point decrease in the unemployment rate?

(ii) By what percentage has the unemployment rate fallen?

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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