MACROECONOMICS W/ MY ECON LAB
MACROECONOMICS W/ MY ECON LAB
6th Edition
ISBN: 9781323460689
Author: Hubbard
Publisher: PEARSON C
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Chapter 9, Problem 9.1.7PA
To determine

Jobs creation and jobs destruction in the U.S. economy

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In his song “Allentown,” Billy Joel sings about the demise of the steel and coal industries in Pennsylvania. Why do you think the loss of manufacturing jobs was so difficult on the workers in areas like Allentown and parts of the Midwest where manufacturing was once the largest employer? What type of unemployment is the song about?
You are given the following information for a country: population of working age 6 million; labour force 4 million; and employed 3.5 million. Based on this information, which of the following is correct? a. There are 2.5 million unemployed in this country. b. The unemployment rate is approximately 8%. c. The employment rate is approximately 88%. d. The participation rate is approximately 67%.
Economists use labour-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing? a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs. c. Numerous students graduate from college but cannot find work. d. Numerous students graduate from college and immediately begin new jobs. e. A stock market boom induces newly enriched 60-year-old workers to take early retirement. f. Advances in healthcare prolong the life of many retirees

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MACROECONOMICS W/ MY ECON LAB

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