PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 12P
(a):
To determine
Average
(b):
To determine
The average duration of unemployment for each economy.
(c):
To determine
The economy with highest cost of unemployment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The town of Villageton has 500 residents, of which 300 are employed, 30 are not working but actively seeking work, 70 are children in school, 40 are retirees, 30 are full-time college students, 20 are institutionalized, and 10 are discouraged workers.
Calculate the unemployment rate in Villageton.
Suppose 10 of the 30 college students graduate and enter the labor force actively seeking work, but only 5 find a job. How does this change the unemployment rate in Villageton?
Is this economy “fully-employed” according to the U.S. definition? Why or why not?
How would the “U6” definition of unemployment differ from your answer to question #2a? Would it be higher or lower?
Calculate the labor force participation rate (LFPR) using the numbers above.
Suppose the population of a fictional economy falls into the following categories: 28 million are retired or homemakers; 30 million have full-time employment; 24 million have one part-time job; 28 million have two part-time jobs; 12 million do not have employment, but are actively looking for employment; and 20 million would like employment but do not have employment and are not actively looking for employment. 5 million are under the age of 10.
a. Calculate the official unemployment rate (as a percentage, not decimals) as calculated by the U.S. Bureau of Labor Statistics. Round your answer to two decimal places.
Suppose the population of a fictional economy falls into the following categories: 28 million are retired or homemakers; 30 million have full-time employment; 24 million have one part-time job; 28 million have two part-time jobs; 12 million do not have employment, but are actively looking for employment; and 20 million would like employment but do not have employment and are not actively looking for employment. 5 million are under the age of 10.
Calculate the official unemployment rate (as a percentage, not decimals)as calculated by the U.S. Bureau of Labor Statistics. Round your answer to two decimal places.
What is total employment as measured by the establishment survey? Use the numbers from Above
Chapter 5 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
Knowledge Booster
Similar questions
- Suppose that Apple Inc. manufactures a new generation of iPhones that can ascertain whether your interlocutor is lying. Assuming that the price of this good will be higher than that of the currently marketed iPhone, comment on the CPI’s capability to correctly measure the corresponding change in the cost of living.arrow_forwardSocial Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation.arrow_forwardWhich of the following was a way for the Bureau of Labor Statistics to reduce the quality/new good bias in its calculation of the CPI? Remove energy and food prices. Allow for some substitution amongst products. Update the list of products included in the CPI more often and rapidly. Automatically reduce the inflation by 0.5% to account for quality/new good bias.arrow_forward
- Discuss how it is simultaneously possible for “most” unemployment to be due to short spells and for “most” unemployment to be accounted for by a few persons in very long spells.arrow_forwardSuppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate? 6.7%9.5%10.5%28%arrow_forwardDiscuss why the unemployment rate indicator has been criticised for underestimating the level of unemploymentarrow_forward
- Q18 MCQ The unemployment rate may underestimate the true extent of unemployment if: many part-time employees would like to work fulltime, but are unable to get the additional work. employees increase the number of hours they work overtime. there are a large number of people working in the underground economy. people are pretending to look for work so that they can continue receiving unemployment benefits.arrow_forwardSuppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $9.00. In year two, the price of the same basket is $8.00. From year one to year two, there is at an annual rate of . In year one, $90.00 will buy baskets, and in year two, $90.00 will buy baskets. This example illustrates that, as the price level falls, the value of money .arrow_forwardThe three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify each person in the table as structurally, frictionally, or cyclically unemployed. Unemployment Type Structural Frictional Cyclical Automobile demand has fallen during a recent recession, and Maria has been laid off from her job on the assembly line. Edison recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. Hilary is a physician who has decided to relocate to California to be closer to her family. She is currently interviewing with several prestigious hospitals in the San Francisco Bay Area. The following table shows data on frictional, cyclical, structural, and total unemployment for an economy. Unemployment Type Rate (Percent) Frictional 3.2…arrow_forward
- If the number of employed people equals 185 million, the number of unemployed people equals 15 million, and the number of people in the population aged 16 and older equals 210 million, then a. the unemployment rate equals 7.14% and the labor force participation rate equals 95.2%. a. the unemployment rate equals 7.23% and the labor force participation rate equals 85.7%. a. the unemployment rate equals 7.5% and the labor force participation rate equals 92.9%. a. the unemployment rate equals 7.7% and the labor force participation rate equals 92.9%. a. the unemployment rate equals 7.7% and the labor force participation rate equals 92.9%.arrow_forwardIn year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 percent. If the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal interest rate must: a. fall by 3 percentage points b. rise by 9 percentage points c. rise by 6 percentage points d. rise by 3 percentage pointsarrow_forwardQ13 mcq Frictional unemployment is: unemployment that is due to the friction of competing ideological systems. unemployment caused by lack of training and education. unemployment caused by automation in the workplace. unemployment that is due to normal turnover in the labor market.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
