9. (LO 2) Suppose that the labour force is currently 5 million and the unemployment rate is 11 percent.

On August 1, government announces that it will create 40 000 new jobs to be filled over the next three months.

Only people who were unemployed on August 1 will be hired. As a result, 120 000 people immediately apply for the jobs; half of these people had previously not been actively seeking work.

a) Has the labour force changed as a result of this announcement? Explain.

b) What will be the unemployment rate before the jobs are filled?

c) Once all the jobs are filled, what will the unemployment rate be?