a. Assume that the participation rate in Australia changes to 64%. Also assume that the adult population and the number of employed remain unchanged (hint: if the adult population is not reported, you can calculate it easily using the labour force and participation rate).

What would be the new labour force, the number of unemployed, and the unemployment rate?

Round your numbers to whole people (i.e. all will have decimal places, except the unemployment rate, for which report 2 decimal places).

b. Based on all the above material, if you were the Prime Minister what would you do to try to reduce the rate of unemployment (both short-term and long-term)?