Consider a hypothetical economy in which the labor force consists of 200 people. Of those, 180 people are employed full-time and 20 people areunemployed. The economy follows the same conventions as the U.S. Bureau of Labor Statistics (BLS) in computing its employment figures. Therefore,initially the unemployment rate is calculated as follows:Unemployment RateNumber of Unemployed PeopleNumber of People in the Labor Forceх 10020х 100200= 10%Suppose a reduction in foreign demand for this economy's products causes an economic recession-a prolonged period of declining output. Thefollowing table offers two possible scenarios resulting from the recession.Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor marketchanges in this economy.ScenarioUnemployment RateA: Firms reduce work hours by 10%. The number of involuntary part-time workers rises%as firms respond to the reduction in the demand for their products by reducing the hoursof each employed person from 40 to 36 hours per week.B: Firms reduce employment by 10%. The number of unemployed workers rises as firmsrespond to the reduction in the demand for their products by laying off 18 previouslyemployed workers.True or False: The unemployment rate for scenario A in the previous table overstates the true extent of underemployment in the economy because theBLS counts part-time workers as employed.O TrueFalseI|||

Total Labor Force consists of both Employed and Unemployed Workers. Unemployment Rate = Total…

Answered: Consider a hypothetical economy in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. The table below shows unemployment and labor force statistics for an economy. Actual rate of unemployment 3% Natural rate of unemployment 4% Population of the country 125 million Number of people employed 97 million Number of people unemployed 3 million Number of people employed part time 5 million Number of discouraged workers 2 million (c) Given the state of the economy described in the table, is actual real output less than, greater than, or equal to potential real output? Explain. (d) Calculate what the cyclical unemployment rate would be if the actual rate of unemployment increased to 5 percent. Show your work.
== Assume that Co = 40, G = 220, T = 120, I = 150, X = 44, Z = M = 54, b = mpc = .75 and t =.25, the actual unemployment rate = 5.7%, and the natural unemployment rate is 5.1%. A one dollar increase in G will cause Y to increase by dollars. $2.439 $2.392 $2.305 $2.286 $2.253
Let u denote the unemployment rate, f the job- finding rate, and s the separation rate. The law of motion for the unemployment rate is (where Δυ Ut+1 ut is the change in the unemployment rate): Au suf (1 – u) Au fu - s (1 – u) Au = su + f(1 – u) = Au = s (1 – u) – fu Au = fu+ s (1 – u)
In August of 2020, the United States unemployment rate was 8.4%; in September, it was 7.8%. Which of the following is true? There is a 7.7% decrease in the United States unemployment rate from August to September, 2020. There is a 0.077 percentage point decrease in the United States unemployment rate from August to September, 2020. There was a 0.071 percentage point decrease in the United States unemployment rate from August to September, 2020. There was a 0.6% decrease in the United States unemployment rate from August to September, 2020. There was a 7.1% decrease in the United States unemployment rate from August to September, 2020.
Classify each statement about the U.S. unemployment rate as true or false. True False Answer Bank Changes in technology and new workers joining the workforce have coñtributed to an overall upward trend in the unemployment rate. It is very likely that an unemployment rate of 0% will never be observed. The end of the 20th century saw some of the highest rates of unemployment in US history. Unemployment generally remains stable and static over time, The behavior of the unemployment rate is related to the business cycle.
a ) Marie recently graduated from college with a degree in electrical engineering, but she has not yet started working. When will she be counted as “unemployed” according to the BLS? b) Eric was laid off, but he is expecting to be recalled. He has not looked for work since being laid off. Natalie is not employed, nor was she laid off. Who is counted as “unemployed” in the U.S. labor force statistics? c) What are the four different types of unemployment? Explain each.
Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. Following information is extracted from a database maintained by the country's ministry of labor: See attached for table. Question 1 Calculate the unemployment rate and the labor force of New Zombie. Show your calculation. (See next page for the formula and directions for this problem). To calculate the unemployment rate you have to use the formula: Unemployment rate = # of unemployed ÷ labor force × 100% The BLS is the Bureau of Labor Statistics, an agency within the Department of Labor. The unemployment rate is calculated by taking a random survey of 60,000 households nationwide. (Note: Households are in the survey for four months, out for eight, back in for four, and then out for good. Interviewers use the phone or home visits using laptops.) The population is divided into three groups: Group 1 consists of those under age 16 or institutionalized.…
Assume that Co = 40, G = 220, T = 120, I = 150, X = 44, Z = M = 54, b = mpc = .75 and t =.25, the actual unemployment rate = 5.7%, and the natural unemployment rate is 5.1%. A one dollar increase in T will cause Y to decrease by dollars. -$1.91 -$1.71 -$1.51 -$1.31 -$1.11
FILL IN THE BLANKS Unemployment occurs when a worker who is not currently employed is unable to find suitable paid employment. In every economy, however, there will always be people moving between jobs. This group is known as the unemployed. But, if finding another job takes so long so that the individual stops looking, then he/she is classified as a worker and is no longer counted in the unemployment statistics. An economy’s natural rate of unemployment is the sum of its frictional and employment. If the labor market become more efficient so that people looking for work find matching jobs quicker, then the natural rate of unemployment will . The increase in unemployment that occurs during recessions (or downturns) in the economy is known as the type of unemployment.
The table below shows unemployment and labor force statistics for an economy. Actual rate of unemployment 3% Natural rate of unemployment 4% Population of the country 125 million Number of people employed 97 million Number of people unemployed 3 million Number of people employed part time 5 million Number of people discouraged workers 2 million Would the number of people employed part-time be included in labour force or not? Given the state of the economy described in the table, is actual real output less than, greater than, or equal to potential real output? Explain. Calculate what the cyclical unemployment rate would be if the actual rate of unemployment increased to 5 percent. Suppose discouraged workers reenter the labor force and find employment. Will the actual rate of unemployment increase, decrease, or stay the same?
Q18 MCQ The unemployment rate may underestimate the true extent of unemployment if: many part-time employees would like to work fulltime, but are unable to get the additional work. employees increase the number of hours they work overtime. there are a large number of people working in the underground economy. people are pretending to look for work so that they can continue receiving unemployment benefits.
This question focuses on the labor market and unemployment using the most recent U.S. data. The adult population (N) of the U.S. is approximately 259 million. The labor force is approximately 162.5 million and the number of employed workers (E) is approximately 156.5 million. What is the unemployment rate? What is the labor force participation rate? Both are lower than 2010 U.S. values (u2010 = 9.6% and LFPR2010 = 64.9%) Give two plausible reasons why each labor market indicator is lower in 2018.

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