EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 22, Problem 1IAPA
To determine
To compare:
The
To determine
To mention:
The way in which unemployment rate in the 2000 and 2016 were affected with the unemployment of marginally attached workers in the USA.
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What is natural rate of unemployment? When do we say an economy has full employment?
2. Identify what type of unemployment will result from the following scenarios
a. Jane has completed college and quit her job at Tim Horton so she can work full-time in her marketing field:
b. The clothing store George used to work for was shut down as the clothing brand is now selling all its collection through its online website:
c.The business Hank was working for had to shut down as there has been a decrease in overall demand in the economy:
What are the two main causes of natural unemployment? Assume an economy has
undergone a shift from a manufacturing sector to a service sector. How will this
affect its natural unemployment rate? Explain. +
Briefly explain a government policy to help alleviate the problems caused by this
change.
s
Assume you have the following information about an economy:
Labor Force of an Economy
Sumber of People (nillions)
243.8
153.6
90.2
144.2
Population over age 16
Labor force
Not in the labor force
Employed
Unemployed
Instructions: Round your answers to two decimal places
a. What is the unemployment rate in this economy?
b. What is the labor force participation rate?
c. Assume that 0.9 million discouraged workers decide to start looking for work again, thereby increasing the number of officially
unemployed workers by 0.9 million. What is the unemployment rate now?
d. What is the new labor force participation rate?
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