Consider a hypothetical economy in which the labor force consists of 300 people. Of those, 270 people are employed full-time and 30 people are unemployed. 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 Rate= -10% x 100 in the Labor F x 100 Suppose a reduction in foreign demand for this economy's products causes an economic reces following table offers two possible scenarios resulting from the recession. period of declining output. The Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor market changes in this economy. Scenario A: 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 hours of each employed person from 40 to 36 hours per week. 8: Firms reduce employment by 10%. The number of unemployed workers rises as firms respond to the reduction in the demand for their products by laying off 27 previously employed workers. Unemployment Rate

Consider a hypothetical economy in which the labor force consists of 300 people. Of those, 270 people are employed full-time and 30 people are unemployed. 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 Rate= -10% x 100 in the Labor F x 100 Suppose a reduction in foreign demand for this economy's products causes an economic reces following table offers two possible scenarios resulting from the recession. period of declining output. The Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor market changes in this economy. Scenario A: 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 hours of each employed person from 40 to 36 hours per week. 8: Firms reduce employment by 10%. The number of unemployed workers rises as firms respond to the reduction in the demand for their products by laying off 27 previously employed workers. Unemployment Rate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose the world price of wood pulp falls substantially. The demand for labour among wood pulp-producing firms in northern British Columbia will .The demand for labour among paper and packaging-producing firms in southern British Columbia, for which wood pulp is an input, The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment. will Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Establishing government-run employment agencies to connect unemployed workers to job vacancies Extending the number of weeks for which unemployed workers are eligible for Employment Insurance benefits from the government Improving a widely used job search website so that it matches workers to job vacancies more effectively
Label the following statement as true or false: A permanent, large increase in the price of oil reduces the natural rate of unemployment Select one: True False
How do economists define unemployed workers? Group of answer choices Although currently working, they are not happy with their current job Working on contract for a limited time Not currently working Not currently working but actively searching for work
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.
When the actual unemployment rate is likely to fall below the natural rate of unemployment, we can expect that
During this pandemic-recession, it is likely that many people (particularly females with children) who are officially counted as not in labor force actually should be counted as a) unemployed b) employed
Frictional unemployment is the Frictional unemployment is the a) unemployment that results when people become disheartened about their chances of finding a job and so stop looking for work. b) portion of unemployment that is due to the normal working of the labour market. c) portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries. d) unemployment that occurs during recessions.
Labor force participation rate 60%, Population (assume everyone is over 16 years of age, civilian, non-institutionalized in this economy) 150 million, Unemployment rate=5% Calculate the number of people Employed
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?
Assume you have the following information about the unemployment rate among differentgroups in the labor force: adult males 5%, adult females 4.5%, and teenagers 12%. Teenagers account for15% of the work force and, women account for 40% of the adult labor force. What is the actual nationwideunemployment rate?
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.