The table below provides employment and labour force data for a small economy over a 3-month period. Stock of Unemployment Stock of Employment 1,530,000 1.475.000 1,420,000 Sept. 1 Oct. 1 Nov. 1 120,000 120,000 120,000 Stock of outside the Labour Force a. The unemployment rate on September 1 is 7.27 %. (Round your response to two decimal places.) The unemployment rate on October 1 is 7.52 %. (Round your response to two decimal places.) The unemployment rate on November 1 is 7.79 %. (Round your response to two decimal places.) 350,000 405,000 460,000 Total Population 2,000,000 2,000,000 2,000,000 a. What is the unemployment rate on September 1, October 1, and November 1? b. Explain why the unemployment rate changes even though the stock of unemployment remains stable. c. Provide a likely explanation for the change in this economy's labour force. In this case, is the unemployment rate an accurate measure of the amount of slack (excess supply) in the labour market? b. The unemployment rate changes even though the stock of unemployment remains stable because the stock of employment has decreased causing the labour force to decrease. This results in a smaller number in the denominator when calculating the unemployment rate resulting in a different unemployment rate. c. More people are than there are people the labour force. This an accurate measure since the stock of employment is the only thing that has changed.
The table below provides employment and labour force data for a small economy over a 3-month period. Stock of Unemployment Stock of Employment 1,530,000 1.475.000 1,420,000 Sept. 1 Oct. 1 Nov. 1 120,000 120,000 120,000 Stock of outside the Labour Force a. The unemployment rate on September 1 is 7.27 %. (Round your response to two decimal places.) The unemployment rate on October 1 is 7.52 %. (Round your response to two decimal places.) The unemployment rate on November 1 is 7.79 %. (Round your response to two decimal places.) 350,000 405,000 460,000 Total Population 2,000,000 2,000,000 2,000,000 a. What is the unemployment rate on September 1, October 1, and November 1? b. Explain why the unemployment rate changes even though the stock of unemployment remains stable. c. Provide a likely explanation for the change in this economy's labour force. In this case, is the unemployment rate an accurate measure of the amount of slack (excess supply) in the labour market? b. The unemployment rate changes even though the stock of unemployment remains stable because the stock of employment has decreased causing the labour force to decrease. This results in a smaller number in the denominator when calculating the unemployment rate resulting in a different unemployment rate. c. More people are than there are people the labour force. This an accurate measure since the stock of employment is the only thing that has changed.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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CS 23
Economics
I only need the answer for c
The first blank....graduating from school/retiring from their job
second blank ...entering/exiting
third blank... is /is not
Transcribed Image Text:The table below provides employment and labour force data for a small economy over a 3-month period.
Stock of Unemployment Stock of
Employment
1,530,000
1,475,000
1,420,000
Sept. 1
Oct. 1
Nov. 1
120,000
120,000
120,000
Stock of outside the
Labour Force
350,000
405,000
460,000
Total Population
the labour force. This
2,000,000
2,000,000
2,000,000
a. What is the unemployment rate on September 1, October 1, and November 1?
b. Explain why the unemployment rate changes even though the stock of unemployment remains stable.
c. Provide a likely explanation for the change in this economy's labour force. In this case, is the unemployment rate an accurate measure of the amount of slack (excess supply) in the labour market?
a. The unemployment rate on September 1 is 7.27 %. (Round your response to two decimal places.)
The unemployment rate on October 1 is 7.52 %. (Round your response to two decimal places.)
The unemployment rate on November 1 is 7.79%. (Round your response to two decimal places.)
b. The unemployment rate changes even though the stock of unemployment remains stable because the stock of employment has decreased causing the labour force to decrease. This results in a smaller
number in the denominator when calculating the unemployment rate resulting in a different unemployment rate.
c. More people are
than there are people
an accurate measure since the stock of employment is the only thing that has changed.
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