Suppose you are given the following data for a small economy: Number of unemployed workers: 1,000,000. Labor

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Suppose you are given the following data for a small economy:

Number of unemployed workers: 1,000,000.
Labor force: 10,000,000.
Based on this data, answer following:

a. What is the unemployment rate?

b. Can you determine whether the economy is operating at its full employment level?

c. Now suppose people who had been seeking jobs become discouraged, and give up their job searches. The labor force shrinks to 900,500 workers, and unemployment falls to 500,000 workers. What is the unemployment rate now? Has the economy L987 improved?

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Related Book For  book-img-for-question

Principles Of Macroeconomics

ISBN: 9780691170817

1st Edition

Authors: Libby Rittenberg, Timothy Tregarthen

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