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Chapter 22, Problem 1.7P
To determine

Validating the statement on unemployment.

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Virtually all economists and policymakers agree that, within limits, higher employment is better. If this is true, couldn't the government create more employment by hiring people to dig holes and fill them in again? Is this good economic policy?
The college graduates of 2000 could hardly have asked for better luck. The unemployment rate dropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers were literally scrambling for new hires. Starting salaries rose, many graduating seniors had numerous job offers, and some firms even offered $10,000- $20,000 bonuses to students who signed the dotted line. Three years later, the job market for the Class of 2003 was rather different. U.S. economic growth had slowed to a crawl, and then to a halt. Companies that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003. They were not eager to hire more. Bonuses and other “perks” disappeared; job offers became scarcer. With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000.   YOU ARE REQUIRED TO:   (i) Briefly explain…
The following data pertains to Googa, an economy.  Population:258 million. Population 16 years and under or institutionalized: 116 million. Population employed: 89 million.  Population unemployed: 3 million. Population employed part time, but willing to work full time 16 million.  Population currently not employed, not seeking employment, but willing and able to work 5 million.    a. what is the labor force in Googa? b. what is the unemployment rate in Googa?
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