Answer the following questions about unemployment. If a country has a noninstitu
ID: 1214949 • Letter: A
Question
Answer the following questions about unemployment. If a country has a noninstitutional population of 200 million and a labor force of 160 million, and 140 million people were employed, what is its labor force participation rate and its unemployment rate? If 10 million new jobs were created in the country, and it attracted 20 million of the people previously not in the labor force into the labor force, what would the new labor force participation rate and new unemployment rate be? Beginning with the situation in part (a), if 10 million unemployed people became discouraged and stopped looking lot work, what would the new labor force participation rate and new unemployment rate be? Beginning with the situation in part (a), if 10 million current workers retired but their jobs were filled by others still m the labor force, what would the new labor force participation rate and new unemployment rate be?Explanation / Answer
Q2. A Total non – institutional population = 200 million
Total labor force = 160 million
Total employed labor force = 140 million
Total population = 200 + 160 = 360 million
Thus labor force participation rate = 140/360 *100 = 38.89%
Unemployment rate = 20 / 160*100 = 12.5 %
Q2. B Total new jobs created = 10 million
Thus labor force participation rate = 150/360 *100 = 41.67%
Unemployment rate = 10 / 160*100 = 6.25 %
Q2. C Total non – institutional population = 200 million + 10 million = 210 million
Total labor force = 160 million – 10 million = 150 million
Total employed labor force = 140 million
Total population = 200 + 160 = 360 million
Thus labor force participation rate = 140/360 *100 = 38.89%
Unemployment rate = 10 / 150*100 = 6.67 %
Q2. D Total non – institutional population = 200 million + 10 million = 210 million
Total labor force = 160 million – 10 million = 150 million
Total employed labor force = 140 million
Total population = 200 + 160 = 360 million
Thus labor force participation rate = 150/360 *100 = 41.67%
Unemployment rate = 0/ 150*100 = 0 %