Using the following data calculate:(iv) The Labour Force Participation rate.(v) The “official” unemployment ratecurrently working23,000 volunteer workers9845(ages 13-14) looking for work12,000 (ages 15)looking for work45,600 Part-time workers56 family workers who worked 15 hrs a week234 self-employed6543 discouraged workers67,432(ages 23-25)looking for work67,890 laid off receptionists looking for work544,321(ages 16-20) looking for work)current population is 6,000,0005654 Temp workers5000 armed forces543 recent university graduates that are going back to graduate school3500 institutionalizedc) Suppose that 20,000 of the employed switch to jobs in the underground economy. When interviewed by STATIN, 50% of these switchers report that they are not working and not seeking work, while the other 50% report that they are not working but seeking work. Explain what happens to the official unemployment rate and the “true” unemployment rate. (d) explain the impact of an increase in the income tax rate from 25 percent to 35 percent on the demand for labor, supply of labor, equilibrium wage, and level of employment.

Answer in step 2. Note please Post D part separately According to Bartleby guidelines. Thankyou

Answered: Suppose that 20,000 of the employed…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Using the following data calculate:

(iv) The Labour Force Participation rate.
(v) The “official” unemployment rate

currently working	23,000 volunteer workers
9845(ages 13-14) looking for work	12,000 (ages 15)looking for work
45,600 Part-time workers	56 family workers who worked 15 hrs a week
234 self-employed	6543 discouraged workers
67,432(ages 23-25)looking for work	67,890 laid off receptionists looking for work
544,321(ages 16-20) looking for work)	current population is 6,000,000
5654 Temp workers	5000 armed forces
543 recent university graduates that are going back to graduate school	3500 institutionalized

c) Suppose that 20,000 of the employed switch to jobs in the underground economy. When interviewed by STATIN, 50% of these switchers report that they are not working and not seeking work, while the other 50% report that they are not working but seeking work. Explain what happens to the official unemployment rate and the “true” unemployment rate.

(d) explain the impact of an increase in the income tax rate from 25 percent to 35 percent on the demand for labor, supply of labor, equilibrium wage, and level of employment.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions