All other Chegg\'s answers are incorrect so... Back to Assignment Average: Attem
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All other Chegg's answers are incorrect so...
Back to Assignment Average: Attempts: 5. Problems and Applications Q5 Economists use labor-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 (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment-population ratio in each of the following scenarios. Effect On... Employment-Population Ratio Unemployment Rate Scenario Many previously laid-off workers find jobs in new startup firms as the economy expands After an unsuccessful search, some laid-off workers quit looking for new jobs. Decreases Increases ? Stays the same As a result of an economic boom, many students drop out of school and start workingIncreasesDecreases as soon as they become adults. A stock market crash leads to large-scale lay-offs of workers aged 55 and above, who decide to retire instead of looking for new jobs. Decreases Grade It Now Save & Continue Continue without savingExplanation / Answer
1.
Unemployment rate decreases
Employment to population ratio increases
People are getting jobs, so unemployment rate decreases and employment to population ratio increases.
2.
Unemployment rate decreases
Employment to population ratio stays the same
The laid-off workers now discouraged workers, so the unemployment rate decrease. But, they were already unemployed and remain now the part of the population, so employment to population ratio doesn’t change.
3.
Unemployment rate decreases
Employment to population ratio increases
New joinings in the labor force gets job ASAP, so unemployment rate decreases. It also improves the employment to population ratio.
4.
Unemployment rate decreases
Employment to population ratio decreases
Since people being laid-off go to retirement. Then, unemployment rate decreases. here, employment to population ratio decreases also.