an economy has 10,000 people that are not working (but are looking and available for work) and 90,000 people who are working, what is its unemployment rate? Now suppose that 4,000 of the people looking for work get discouraged and give up on searching. What happens to the unemployment rate? Would this be interpreted as good news for the economy or bad news? Explain
an economy has 10,000 people that are not working (but are looking and available for work) and 90,000 people who are working, what is its unemployment rate? Now suppose that 4,000 of the people looking for work get discouraged and give up on searching. What happens to the unemployment rate? Would this be interpreted as good news for the economy or bad news? Explain
Chapter12: Business Cycles And Unemployment
Section: Chapter Questions
Problem 9SQP
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If an economy has 10,000 people that are not working (but are looking and available for work) and 90,000 people who are working, what is its
Now suppose that 4,000 of the people looking for work get discouraged and give up on searching. What happens to the unemployment rate? Would this be interpreted as good news for the economy or bad news? Explain.
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