Table 1 - Labor force data Year 1Year 2Population100 million110 millionLabor Force90 million100 millionNumber of Employed80 million96 millionAssuming that "full employment" is defined as a 5% unemployment rate, which of the following is true? Answers:A. Production has moved from on the PPF in Year 1 to inside the PPF in Year 2. B. Production has moved from on the PPF in Year 1 to outside the PPF in Year 2. C. Production has moved from inside the PPF in Year 1 onto the PPF in Year 2. D. The economy is producing on the PPF in both Years 1 and Year 2.

Year 1: Unemployed = LF – Employed = 90 – 80…

Answered: Table 1 - Labor force data Year 1…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 45P: A country with a population of eight million adults has five million employed, 500,000 unemployed,...

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Table 1 - Labor force data

	Year 1	Year 2
Population	100 million	110 million
Labor Force	90 million	100 million
Number of Employed	80 million	96 million

Assuming that "full employment" is defined as a 5% unemployment rate, which of the following is true?


Answers:	A. Production has moved from on the PPF in Year 1 to inside the PPF in Year 2.
	B. Production has moved from on the PPF in Year 1 to outside the PPF in Year 2.
	C. Production has moved from inside the PPF in Year 1 onto the PPF in Year 2.
	D. The economy is producing on the PPF in both Years 1 and Year 2.

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