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. Scenario An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. After a long search, some laid-off workers find new jobs. Numerous students graduate from college but cannot find work. A stock market boom induces newly enriched 60-year-old workers to take early retirement. Unemployment Rate Effect On... Employment-Population Ratio
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. Scenario An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. After a long search, some laid-off workers find new jobs. Numerous students graduate from college but cannot find work. A stock market boom induces newly enriched 60-year-old workers to take early retirement. Unemployment Rate Effect On... Employment-Population Ratio
Chapter1: Making Economics Decisions
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Transcribed Image Text: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.
Scenario
An auto company goes bankrupt and lays off its workers, who immediately start
looking for new jobs.
After a long search, some laid-off workers find new jobs.
Numerous students graduate from college but cannot find work.
A stock market boom induces newly enriched 60-year-old workers to take early
retirement.
Employment-Population
Effect On...
Unemployment Rate
Ratio
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