Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 28, Problem 4PA
Sub part (a):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (b):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (c):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (d):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (e):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Sub part (f):
To determine
The changes in unemployment rate and employment population ratio and the economy.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Economists use labor-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed). Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?
Situations
unemployment rate
employment–population ratio
More meaningful one
a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs
b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs.
c. Numerous students graduate from college but cannot find work.
d. Numerous students graduate from college and immediately begin new jobs.
e. A stock market boom induces newly enriched 60-year-old workers to take early retirement.…
Economists use labour-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?
a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs.
b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs.
c. Numerous students graduate from college but cannot find work.
d. Numerous students graduate from college and immediately begin new jobs.
e. A stock market boom induces newly enriched 60-year-old workers to take early retirement.
f. Advances in healthcare prolong the life of many retirees
Economists use labor-market data to evaluate how well an economy is using its most valuable resource—its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed).
Indicate what happens to the unemployment rate and the employment–population ratio in each of the following scenarios.
Scenario
Effect On...
Unemployment Rate
Employment–Population Ratio
An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. After an unsuccessful search, some laid-off workers quit looking for new jobs. Numerous students graduate from college and immediately begin new jobs. Advances in health care prolong the lives of many retirees.
Chapter 28 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 28.1 - Prob. 1QQCh. 28.2 - Prob. 2QQCh. 28.3 - Prob. 3QQCh. 28.4 - Prob. 4QQCh. 28.5 - Prob. 5QQCh. 28 - Prob. 1QRCh. 28 - Prob. 2QRCh. 28 - Prob. 3QRCh. 28 - Prob. 4QRCh. 28 - Prob. 5QR
Ch. 28 - Prob. 6QRCh. 28 - Prob. 7QRCh. 28 - Prob. 1QCMCCh. 28 - Using the numbers in the preceding question, what...Ch. 28 - Prob. 3QCMCCh. 28 - Prob. 4QCMCCh. 28 - Prob. 5QCMCCh. 28 - Prob. 6QCMCCh. 28 - Prob. 1PACh. 28 - Prob. 3PACh. 28 - Prob. 4PACh. 28 - Prob. 5PACh. 28 - Prob. 6PACh. 28 - Prob. 7PACh. 28 - Prob. 8PACh. 28 - Prob. 9PA
Knowledge Booster
Similar questions
- Economists use labor-market data to evaluate how well an economy is using its most valuable resource—its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment–population ratio in each of the following scenarios. Scenario Effect On... UNEMPLOYMENT RATE EMPLOYMENT POPULATION RATION Many previously laid-off workers find jobs in new startup firms as the economy expands. (DECREASE, INCREASE OR STAY THE SAME) (DECREASE, INCREASE OR STAY THE SAME) After an unsuccessful search, some laid-off workers decide to go back to school as full-time students. (DECREASE, INCREASE OR STAY THE SAME) (DECREASE, INCREASE OR STAY THE SAME) As a result of an economic boom, many students drop out of school and start working as soon as they become adults. (DECREASE,…arrow_forwardThis question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four different countries and asked to identify the unemployment rate. Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the labor force and 65 are employed. What is the unemployment rate in Asartaland? Task 2: The population of Millsville is 130. Of these 130 individuals, 90 are in the labor force and 20 are unemployed. What is the unemployment rate in Millsville?arrow_forwardSuppose the unemployment rate in Economia is 8%, and there are 2 million unemployed persons in the economy. What is the size of the labor force? Write your answer in millions of people. Answer: Nexarrow_forward
- Assume you have the following information about an economy: Labor Force of an Economy Number of People (millions) |245.30 Population over age 16 Labor force 154.80 Not in the labor force 90.50 Employed 146.00 Unemployed 8.80 Instructions: Round your answers to 2 decimal places. a. What is the unemployment rate in this economy? b. What is the labor force participation rate? c. Suppose that 0.9 million currently unemployed workers decide to no longer actively look for work. What is the unemployment rate in this economy now? d. Whát is the new labor force participation rate?arrow_forwardEconomicsarrow_forwardUnemployment is a very important topic in macroeconomics. A high unemployment rate means that a lot of individuals willing to work cannot find a job. This is bad for the economy, as some resources (i.e., labour) remain idle. Comment on the effects that being unemployed have on an individual.arrow_forward
- Hi, I need help solving Part 5 of this Macroeconomics question (outlined in red). The feedback given with my incorrect response was: "The answer you entered for the new labor force participation rate is not correct. How are discouraged workers taken into account in the labor force participation rate? Remember to multiply by 100 in order to obtain the percentage."arrow_forward4.arrow_forwardWhich of the following people would be unemployed (or belonging to any labor market group) according to official statistics? Shortly explain why or why not. (a) A person who is home painting the house while seeking a permanent position as an electrician. (b) A full-time student. (c) A recent graduate who is looking for a job. (d) A parent who decides to stay home taking care of children full time.arrow_forward
- Suppose the economy is in a recession and the unemployment rate is exceptionally high. Show that a technological breakthrough that greatly increases labor productivity could help reduce the unemployment rate without hurting the standard of living of the average worker. (Use diagram and analysis, you only need to use the labor market here.)arrow_forwardIn 2019, there were 10,000 people employed, 1,000 people unemployed, and 1,500 people not in the labor force. In 202 0, the following events occurred: 300 people who were looking were hired, 400 people were fired from their jobs and only half started looking for a new job, 100 people quit their jobs and did not look for new, 300 people who were not working decided to start looking, 450 people retired, and 200 people who were looking decided to stop looking due to lack of success. What is the labor force participation rate in 2020? Round to one decimal place.arrow_forwardConsider a tiny hypothetical economy composed entirely of the following people: Alex, Becky, Clancy, Eileen, Kate, and Hubert. Each person's employment status is given in the following table. Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as employed, unemployed, "not in the labor force" (if not in the civilian labor force but still part of the adult population), or "not in the adult population" if not in the civilian adult population. Person Alex is a 75-year-old professor. He teaches only one or two courses a year, but still publishes research at a productive rate. Becky is a 32-year-old professional hockey player . She finished her last season as a player 3 weeks ago and is currently interviewing for a coaching position. Clancy is a 79-year-old retired professor. He enjoys volunteering at the local public library. Kate is a 31-year-old science teacher who taught at River Rock Middle School last year. Due to budget cuts, she was laid…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning