(a)
To compute:
The labor force participation and the
Answer to Problem 2P
The labor force participation rate is
Explanation of Solution
Given information:
Non-intuitional population is
Labor force is
Therefore,labor Force participation rate is,
Now, unemployment rate can be calculated by first calculating the unemployed number of workers.
Given,
Non-intuitional population is
labor force is
And
As we know,labor force is the total employed and unemployed workers. That is,
Substitute the value to calculate unemployed workers,
Substitute the values in the formula,
Therefore, the labor Force participation rate is
Labor force participation:
It refers to that percentage of current total population that is willing to work or is working; which means the labor force in total adult population.
Unemployment rate: It refers to the percentage of the people who are unemployed in the total labor force.
(b)
To compute:
The new labor force participation and the unemployment rate.
Answer to Problem 2P
The labor force participation is
Explanation of Solution
Given
New jobs
Also addition of
The new employed workers number would be:-
Now substitute the values in the formula to obtain labor force participation:-
Now, substitute the value to obtain unemployment rate
Thus, the Labor Force participation is
Labor force participation:
It refers to that percentage of current total population that is willing to work or is working; which means the labor force in total adult population.
Unemployment rate: It refers to the percentage of the people who are unemployed in the total labor force.
(c)
To compute:
The new labor force participation and the unemployment rate.
Answer to Problem 2P
The labor force participation is
Explanation of Solution
Non-intuitional population is
labor force is
If
Calculate the labor force participation rate:
Now, to calculate unemployment rate, first calculate total number of unemployed:
Substitute the values to find the unemployment rate,
Labor force participation:
It refers to that percentage of current total population that is willing to work or is working; which means the labor force in total adult population.
Unemployment rate: It refers to the percentage of the people who are unemployed in the total labor force.
(d)
To compute:
The new labor force participation and the unemployment rate.
Answer to Problem 2P
The labor force participation is
Explanation of Solution
Non-intuitional population is
labor force is
If
Calculation of the labor force participation rate:
Now, to calculate unemployment rate, first calculate total number of unemployed:
Substitute the valuesto find the unemployment rate,
Labor force participation:
It refers to that percentage of current total population that is willing to work or is working; which means the labor force in total adult population.
Unemployment rate: It refers to the percentage of the people who are unemployed in the total labor force.
Want to see more full solutions like this?
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Principles of Macroeconomics (MindTap Course List)EconomicsISBN:9781305971509Author:N. Gregory MankiwPublisher:Cengage Learning