MACRO ECON 6
6th Edition
ISBN: 9780357689820
Author: MCEACHERN
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 1P
To determine
Impact of unemployed workers on the labor force participation rate, size of labor force, and
Introduction:
Labor force participation rate refers to the proportion of the working age population available for work and actively seeking work. It is determined by dividing the labor force by the total population.
Size of labor force refers to the total number of people in the working age group available for work.
Unemployment rate is the proportion of the unemployed people in the country. It is determined by dividing the number of unemployed people by the labor force.
Expert Solution & Answer
Explanation of Solution
a. Due to 2 million unemployed workers who decided to return to the school, the labor force participation rate will decrease because labor force includes those people who are actively seeking the work. These have decided to return to the full-time school, so they are no longer the part of labor force.
b. The size of the labor force will decrease because labor force does not include people who are not seeking the work.
c. The unemployment rate will increase because the size of the labor force has decreased, and unemployment rate is determined by dividing the number of unemployed people by the labor force.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Canada has a working age population of 20 million. Of those 11 million are employed and 1 are unemployed. Find the unemployment rate and participation rate
Question 8
ABC Country has 1,289,902 unemployed and a labor force of 4,379,233.
What is the unemployment rate for ABC Country?
Question 4
(a) Assume that you are an economic advisor to our Prime Minister. The prime ministers ask you to design a program to
reduce the amount of unemployment in Malaysia. What major elements would you include in your plan? Justify your
answer,
(b) Study the given table and answer the following questions.
Year
Labor force
Employment
(thousand)
6350
6850
7042
(thousand)
5790
2017
2018
6290
2019
6686
2020
7241
6926
2021
7441
7148
(a) Calculate the unemployment rate for years 2017 to 2021.
(b) What is the percentage of growth in the number of labor force between the year 2017 and 2021?
Knowledge Booster
Similar questions
- If many workers become discouraged from looking for jobs, explain how the number of jobs could decline but the unemployment rate could fall at the same time.arrow_forwardUnder what condition would an increase in the unemployment rate be a positive sign?arrow_forwardUsing the definition of the unemployment rate, is an increase in the unemployment rate necessarily a bad thing for a nation?arrow_forward
- Assess whether the following would be counted as unemployed in the Current Employment Statistics survey. A husband willingly stays home with children while his wife works. A manufacturing worker whose factory just closed down. A college student doing an unpaid summer internship. A retiree. Someone who has been out of work for two years but keeps looking for a job. Someone who has been out of work for two months but isnt looking for a job. Someone who hates her present job and is actively looking for another one. Someone who decides to take a part time job because she could not find a full time position.arrow_forwardWhy do you think that unemployment rates are lower for individuals with more education?arrow_forwardThis question: 1 point(s) possible The BLS survey found the numbers in the table for a small community. Category Number Calculate the unemployment rate and the labor force participation rate for this community. Total number of persons in the community 200 Worked at least 1 hour as paid employees or worked 15 hours or more as unpaid workers in their family business 30 The unemployment rate is percent. >>> Answer to 1 decimal place. Were not working but had jobs or 20 businesses from which they were temporarily absent The labor force participation rate is >>> Answer to 1 decimal place. percent. 20 Had no employment and were not available for work Were available for work and had made 10 specific efforts to find employment some time during the previous 4 weeks Were available for work and were waiting to be recalled to a job from which they had been laid off Next MacBook Air 20 F3 トI F10 FV 888 F4 000 F9 esc F2 F5 F6 F7 $ & * へ # 3 4 5 7 8 Q W E R Y ーの つarrow_forward
- what are 5 factors of unemployment ratearrow_forwardHFC Online Video Tutorial 1. What would the unemployment rate be if, in an economy, there were 10 million unemployed individuals, 118 mitlion employed individuals, and 64 million individuals not in the labor force? A) 5.2% B) 3.9% C) 7.8% D) 5.5% 2. What would the labor force participation rate (LFPR) be if, in an economy, there were 10 million unemployed individuals, 110 millíon employed individuals, and 60 million individuals not in the labor force? A) There is not enough information to calculate the LFPR B) 200% C) 64.7% D) 66.7% 3. Which single word below most nearly captures the definition of GDP? A) Consumption B) Labor C) Output D) Prices 4. If unemployed workers become discouraged and stop looking for work, dropping out of the labor force, the unemployment rate: A) remains unchanged. B) falls. C) may rise or fall, depending on other factors. D) rises. question 1: question 2: question 3: 30 F2 F3 DII F4 F5 F6 F7 FB @ 23 24 & 4 7 Q W E ∞ * > < COarrow_forwardpart 4arrow_forward
- Month CPI January 281.93 February 284.18 March 287.71 April 288.66 The minimum wage was $1.60 in 1968. The CPI in December of 1968 was 35.6 and we have the data above for CPI values in 2022. What is the value of the 1968 minimum wage in April 2022 terms? Round your answer to two digits after the decimal without the dollar sign. Make sure you are using the correct base period.arrow_forwardQUESTION 25 In the country of Kong the labor force participation rate is 65%, the adult population is 161444 and the number of employed is 87092. What is the unemployment rate in Kong?arrow_forwardQuestion 11 (* Which one of the following people would be counted as unemployed in Canada? Kanhaya has stopped looking for work since he was unable to find a suitable job during a two-month search. Doris works only 5 hours a week but is looking for a full-time job. Sharon recently began looking for work after staying at home for 10 years to look after her children. Taylor is a homemaker. Maurice is on a two-month vacation out of the country but is still looking for a job using the Internet.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning