Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 1P
To determine
Impact of unemployed workers on the labor force participation rate, size of labor force, and
Introduction:
Labor force participation rate refers to the proportion of the working age population available for work and actively seeking work. It is determined by dividing the labor force by the total population.
Size of labor force refers to the total number of people in the working age group available for work.
Unemployment rate is the proportion of the unemployed people in the country. It is determined by dividing the number of unemployed people by the labor force.
Expert Solution & Answer
Explanation of Solution
a. Due to 2 million unemployed workers who decided to return to the school, the labor force participation rate will decrease because labor force includes those people who are actively seeking the work. These have decided to return to the full-time school, so they are no longer the part of labor force.
b. The size of the labor force will decrease because labor force does not include people who are not seeking the work.
c. The unemployment rate will increase because the size of the labor force has decreased, and unemployment rate is determined by dividing the number of unemployed people by the labor force.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
14. The unemployed are those people who
do not have jobs.
are not employed but are seeking work
are not working
are not working
Question 11 The unemployment rate measures: the number of people unemployed divided by the number of people employed. O unemployed workers as a percentage of the labor force. O unemployed workers as a percentage of the population age over-sixteen. O unemployed workers as a percentage of the population.
1.4 There is no.......... unemployment at full employment.
Chapter 7 Solutions
Econ Macro (book Only)
Knowledge Booster
Similar questions
- Hydraulic fracturing (tracking) has the potential to significantly increase the amount of natural gas produced in the United States. If a large percentage of factories and utility companies use natural gas, what will happen to output, the price level, and employment as tracking becomes more widely used?arrow_forward5. (Price Indexes) E-readers and HDTVs have not been part of the U.S. economy for very long. Both goods have been decreasing in price and improving in quality. What problems does this pose for people who are responsible for calculating a price index?arrow_forward31. Calculate the unemployment ratearrow_forward
- 11 Frictional unemployment refers to: Unemployment resulting from technological change, competition and government policies. Unemployment occurs because of the mismatch between the characteristics of the labour force and the characteristics of the available jobs. Unemployment occurs due to the ups and downs in the economy resulting from the business cycle. Temporary unemployment occurs when the workers leave their present jobs and look for other jobs.arrow_forward6 Identify the term that describes the category of people, who are retired and not ready to work in an economy. a. Out of labor force b. Employed c. Unemployed d. Labor forcearrow_forward4. Measuring employment, unemployment, and labor force participationarrow_forward
- Explain how a severe drought in a country, whose main activity is agriculture, can affect: The gross domestic product of that country Unemployment rateThe agricultural product price indexarrow_forwardtask 1: A new colleague working with you on the unemployment statistics for this Policy Brief and is feeling a bit puzzled by the labor market data. They tell you: “I don’t understand how sometimes the number of people in employment goes up at the same time that the unemployment also goes up. For example, between July 2022 and August 2022, the number of people in employment increased from 13,620,600 to 13,674,800 but the unemployment rate didn’t fall. Instead, it rose from 3.4% to 3.5%. If there are now more people with jobs, shouldn’t the unemployment rate go down? How is this possible?” Firstly, verify whether your colleague is correct when they say that the unemployment rate increased between July 2022 and August 2022. Next, help your colleague understand how it is possible for the unemployment rate to rise even though the number of people with jobs also rose. Explain what other economic indicator needs to be monitored and provide your calculation of the changes in this other…arrow_forwardQ1: The consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Calculate the price index of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z in 2018, 2019, and 2020. Calculate the percentage change in index between 2018 and 2019 and again between 2019 and 2020. What is rate of inflation/deflation between 2019 and 2020? GOOD QUANTITY CONSUMED 2018 PRICES 2019 PRICES 2020 PRICES X 100 Rs. 10.00 Rs.10.50 Rs. 10.75 Y 150 Rs. 10.50 Rs. 20.00 Rs. 20.00 Z 25 Rs. 30.00 Rs. 30.25 Rs. 30.00arrow_forward
- David earned a salary of $43,500$43,500 in 1994 and $89,000$89,000 in 2010. The consumer price index was 148.2 in 1994 and 215.3 in 2010. David's 1994 salary in 2010 dollars is _.arrow_forwardQUESTION 18 A policeman’s salary would fall under which component of GDP? A. consumer spending B. private investment C. government purchase D. net exportsarrow_forwardTask 1: A new colleague working with you on the unemployment statistics for this Policy Brief and is feeling a bit puzzled by the labour market data. They tell you: “I don’t understand how sometimes the number of people in employment goes up at the same time that the unemployment also goes up. For example, between July 2022 and August 2022, the number of people in employment increased from 13,620,600 to 13,674,800 but the unemployment rate didn’t fall. Instead, it rose from 3.4% to 3.5%. If there are now more people with jobs, shouldn’t the unemployment rate go down? How is this possible?” Firstly verify whether your colleague is correct when they say that the unemployment rate increased between July 2022 and August 2022. Next, help your colleague understand how it is possible for the unemployment rate to rise even though the number of people with jobs also rose. Explain what other economic indicator needs to be monitored, and provide your calculation of the changes in this other…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning