ECONOMICS:PRIN.+POLICY-MINDTAP (1 TERM)
14th Edition
ISBN: 9781337912396
Author: Baumol
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 22, Problem 3TY
To determine
The growth rate of actual GDP and potential GDP.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose the number of employed people in Pakistan is 20.5 million. The unemployment rate in this economy is 8.8 percent, and the labor force participation rate is 65 percent.
What is the size of the labor force and working-age population?
How many people are unemployed?
Explain and analyze different government policies which affect the unemployment rate in Pakistan? ( Maximum 200 words).
Before June 2020, the labor market in Pakistan was at equilibrium with an equilibrium wage (WE) of Rs. 15,000 and equilibrium quantity of labor (LE) 10 million. In the last week of June, 2020, government of Pakistan imposed a minimum wage Act raising the minimum wage to Rs. 20,000. Using a graph, explain the effect of imposition of minimum wage on unemployment in labor market of Pakistan .
A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. What’s the unemployment rate? What share of population is in the labor force? (Show your work in your answer.)
The total adult, working-age population in January 2017 was 254.1 million.
Out of this total population, 152.1 million were classified as employed, and 7.6 million were classified as unemployed.
The remaining 94.4 million were classified as out of the labor force.
As you will learn, however, this seemingly simple chart does not tell the whole story.
Discuss what the unemployment rate is telling us. Explain what the unemployment rate does not tell us regarding the economy, or the health of the economy. What might we miss if we try to judge the economy based only on the unemployment rate?
Chapter 22 Solutions
ECONOMICS:PRIN.+POLICY-MINDTAP (1 TERM)
Knowledge Booster
Similar questions
- You have the following relationship between unemployment and GDP: u = 8.6 - 0.75(Y - 1000). If Y is 999$, how much is the natural rate of unemployment? What your answer as a percentage, round at one (1) decimal, but do not write the percentage sign. %3Darrow_forwardSuppose a country surveys households and finds that 135 million people can be classified as being employed and 7 million people can be classified as being unemployed. The unemployed are people who do not have jobs but are actively looking for work. Given this information, what do we know about the unemployment rate for this country? The unemployment rate for this country is %. (Round your response to two decimal places.) Suppose this country has a natural rate of unemployment equal to 4.43%. What do we know about the size of the output gap, Y - Yn, in this country? The output gap in this country is million units. (Round your response to two decimal places and use a negative sign if necessary.) Now suppose this country has an a = 0.75 (). What do we know about the change in iflation, a - T( – 1), In this country between the previous year and this year? The change in inflation is percent. (Round your response to two decimal places and use a negative sign if necessary.)arrow_forwardJollyland is a hypothetical country. In the year 2015, the unemployment rate in Jollyland is 50%. Let's suppose that 1/4 of the unemployed people in Jollyland found a job in 2016. What is the unemployment rate(in percentage) in 2016arrow_forward
- a) Briefly describe the four phases of a Business Cycle. As of the time of this assignment, in which phase of the business cycle does the U.S. economy find itself? Justify your answer.b) What was the latest reported figure for the U.S. unemployment rate? (see bls.gov)c) What has been the rate of change in the CPI over the last year? (see bls.gov)arrow_forwardIn March 2007, the U.S. unemployment rate was 4.4 percent. In August 2008, the unemployment rate was 6.1 percent. Predict what happened to (1) unemployment between March 2007 and August 2008, assuming that the labor force was constant and (2) the labor force between March 2007 and August 2008, assuming that unemployment was constant.arrow_forwardAssume that in a country, the total labour force is 150,000 workers, and the total numbers of workers employed is 145,500. What is the unemployment rate in the economy?arrow_forward
- Consider two hypothetical countries. In Country A, 18 percent of the labour force is unemployed for half the year and employed for the other half; the remaining 82 percent of the labour force is never unemployed. In Country B, 100 percent of the labour force is unemployed for 9 percent of the year and employed for the other 91 percent of the year. Note that both countries have an overall unemployment rate of 9 percent. Which of these countries seems to have the more serious unemployment problem, and why? O A. Country A because unemployment is unevenly distributed there. B. Country A because the unemployment is most likely cyclical. O C. Country B because unemployment is unevenly distributed there. O D. Country B because people are unemployed for the longer period of time. E. The answer is ambiguous. Both countries have very unevenly distributed unemployment.arrow_forwardConsider two hypothetical countries. In Country A, 18 percent of the labour force is unemployed for half the year and employed for the other half; the remaining 82 percent of the labour force is never unemployed. In Country B, 100 percent of the labour force is unemployed for 9 percent of the year and employed for the other 91 percent of the year. Note that both countries have an overall unemployment rate of 9 percent. Which of these countries seems to have the more serious unemployment problem, and why? O A. Country A because unemployment is unevenly distributed there. O B. Country A because the unemployment is most likely cyclical. OC. Country B because unemployment is unevenly distributed there. O D. Country B because people are unemployed for the longer period of time. O E. The answer is ambiguous. Both countries have very unevenly distributed unemployment.arrow_forwardIf an economy has 10,000 people that are not working (but are looking and available for work) and 90,000 people who are working, what is its unemployment rate? Now suppose that 4,000 of the people looking for work get discouraged and give up on searching. What happens to the unemployment rate? Would this be interpreted as good news for the economy or bad news? Explain.arrow_forward
- If the labor force of 165 million people is growing by 1.6% this year, how many new jobs have to be created each month to keep unemployment from increasing?arrow_forwardConsider an economy that initially has a labor force of 2,000 workers. Of these workers, 1,900 are employed. The economy enters a recession. The number of employed workers falls by 4%. In addition, 0.2% of the labor force becomes discouraged at the prospect of finding a job and leaves the labor force. Show your calculation for the following. a. How many workers are unemployed before the recession? What is the unemployment rate before the recession? b. After the recession begins, what is the size of the labor force? How many workers are employed? How many workers are unemployed? What is the unemployment rate? c. Suppose that total output falls by 8% in the recession, what is the value of the Okun's law coefficient relating the loss of output to the increase in unemployment?arrow_forwardThis question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four different countries and asked to identify the unemployment rate. Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the labor force and 65 are employed. What is the unemployment rate in Asartaland? Task 2: The population of Millsville is 130. Of these 130 individuals, 90 are in the labor force and 20 are unemployed. What is the unemployment rate in Millsville?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
