6. Unemployment and Inflation End of Chapter Problem

	Labor force (thousands)	Unemployment (thousands)
Region	July 2018	July 2019	July 2018	July 2019
Northeast	28,397	28,565	1,459	1,377
South	57,297	58,022	2,978	2,720
Midwest	34,489	34,996	1,627	1,585
West	36,949	37,543	2,099	1,985

A country's labor force is the sum of the number of employed and unemployed workers. The accompanying table provides data on the size of the labor force and the number of unemployed workers for different regions of the United States.

_{Data from: Bureau of Labor Statistics} a. Calculate the number of workers employed in the Midwest region in July 2018 and July 2019. Use your answers to calculate the change in the total number of workers employed between July 2018 and July 2019.

July 2018:

July 2019:

Employment change:

b. Calculate the change in the labor force in the Midwest region from July 2018 to July 2019.

Labor force increased by:

c. Compute unemployment rates in the Midwestregion in July 2018 and July 2019.

Round your answers to one place after the decimal.

2018:

2019:

9. There is only one labor market in Profunctia. All workers have the same skills, and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply of and demand for labor, to answer the following questions. Round answers to two places after the decimal when applicable.

What is the equilibrium wage rate in Profunctia?

Equilibrium wage: $

What is the level of employment?

Level of employment:

thousand workers

What is the size of the labor force?

Labor force:

thousand workers

What is the unemployment rate?

Unemployment rate:

10. If the government of Profunctia sets a minimum wage equal to $12, what will be the level of employment, the size of the labor force, and the unemployment rate? Round answers to two places after the decimal when applicable.

What is the level of employment?

Level of employment:

thousand workers

What is the size of the labor force?

Labor force:

thousand workers

What is the unemployment rate?

Unemployment rate:

%

11, If unions bargain with the firms in Profunctia and set a wage rate equal to $14, what will be the level of employment, the size of the labor force, and the unemployment rate? Round answers to two places after the decimal when applicable.

What is the level of employment?

Level of employment:

thousand workers

What is the size of the labor force?

Labor force:

thousand workers

What is the unemployment rate?

Unemployment rate:

12. If the concern for retaining workers and encouraging high-quality work leads firms to set a wage rate equal to $16, what will be the level of employment, the size of the labor force, and the unemployment rate?

What is the level of employment?

Level of employment:

thousand workers

What is the size of the labor force?

Labor force:

thousand workers

What is the unemployment rate?

Unemployment rate:

17.

Suppose the civilian noninstitutionalized working-age population is 35.935.9 million in in a hypothetical economy. Of these, 4.44.4 million are working part-time and 13.1913.19 million are working full-time. Assume the Bureau of Labor Statistics (BLS) definitions are used for calculating unemploymentdata.

Among those not working, the most recent job-search activity for 3.403.40 million happened less than two weeks ago, while 1.721.72 million most recently looked for work between two and four weeks ago. An additional 0.860.86 million most recently looked for work five weeks ago, and the remaining 12.3312.33 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimalplaces.

What is the size of the total labor force?

millionmillion

How many people are unemployed?

millionmillion

What is the labor force participation rate?

%%

What is the unemployment rate?

%%

19.

Suppose the civilian noninstitutionalized working-age population is 35.935.9 million in in a hypothetical economy. Of these, 4.44.4 million are working part-time and 13.1913.19 million are working full-time. Assume the Bureau of Labor Statistics (BLS) definitions are used for calculating unemploymentdata.

Among those not working, the most recent job-search activity for 3.403.40 million happened less than two weeks ago, while 1.721.72 million most recently looked for work between two and four weeks ago. An additional 0.860.86 million most recently looked for work five weeks ago, and the remaining 12.3312.33 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimalplaces.

What is the size of the total labor force?

millionmillion

How many people are unemployed?

millionmillion

What is the labor force participation rate?

%%

What is the unemployment rate?

%%

20. After a financial crisis hits the country of Arcadia, 88million people become unemployed. If 4545million individuals are lucky enough to keep their jobs, what is the unemployment rate? Please specify your answer to two decimalplaces.

unemployment rate:

21. The overall population for Region A is 113113 million people. The labor force contains 4646 million people, 3232 million people are employed, and 1414 million are unemployed. What is the unemployment rate? Round your answer to two decimals.

22. The table describes hypothetical employment statistics for a country in a given year.

Labor force	Full-time workers and voluntary part-time workers	Involuntary part-time workers	Discouraged workers
150150 million	138138 million	77 million	55 million

Based on the information, what is the unemployment rate? Enter your answer as percentage rounded to one decimal place.

27. It is graduation time in a small island nation. There are a total number of 17,358 graduating from college and are actively looking for work. The college graduates are not included in the current employment measures for the country, which are given in the table. Answer the related questions taking into account the college graduates and the information in thetable.

Number ofemployed	348,935
Number ofunemployed	25,283
Total population over age16	525,999

What is the size of the laborforce?

size of laborforce:

How many people are now out of the laborforce?

out of the laborforce:

What is the unemployment rate? Round the answer to two places after thedecimal.

unemploymentrate:

%

What is the total labor force participation rate? Round the answer to two places after thedecimal.

labor force participationrate:

28. It is graduation time in a small island nation. There are a total number of 17,358 graduating from college and are actively looking for work. The college graduates are not included in the current employment measures for the country, which are given in the table. Answer the related questions taking into account the college graduates and the information in thetable.

Number ofemployed	348,935
Number ofunemployed	25,283
Total population over age16	525,999

What is the size of the laborforce?

size of laborforce:

How many people are now out of the laborforce?

out of the laborforce:

What is the unemployment rate? Round the answer to two places after thedecimal.

unemploymentrate:

%

What is the total labor force participation rate? Round the answer to two places after thedecimal.

labor force participationrate:

28. It is graduation time in a small island nation. There are a total number of 17,358 graduating from college and are actively looking for work. The college graduates are not included in the current employment measures for the country, which are given in the table. Answer the related questions taking into account the college graduates and the information in thetable.

Number ofemployed	348,935
Number ofunemployed	25,283
Total population over age16	525,999

What is the size of the laborforce?

size of laborforce:

How many people are now out of the laborforce?

out of the laborforce:

What is the unemployment rate? Round the answer to two places after thedecimal.

unemploymentrate:

%

What is the total labor force participation rate? Round the answer to two places after thedecimal.

labor force participationrate: