Assume we have an economy with 10 million Labor Force, 9 Million employed and 10

Question

Assume we have an economy with 10 million Labor Force, 9 Million employed and 10 million unemployed.

a) What is the unemployment rate (in decimals out to 2 decimal places)?

b) Now suppose 7200 of the employed lose their jobs and 9000 of the unemployed find jobs. What is the new unemployment rate (in decimals out to 3 decimal places)?

c) No suppose starting with our original numbers for the employed, 8000 of the employed lose their job and 8000 of the unemployed find a job. What is the unemployment rate in this case (in decimals out to 3 decimal places)?

Explanation / Answer

A)Unemployment rate=unemployed/unemployed+employed=1/10=0.1=10%

B)employed=9000000+9000-7200=9001800

Unemployment rate=998200/10000000=0.09982=9.982%

C) unemployment remains same.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects