By keeping track of discouraged workers and underemployed workers, Statistics Canada gets a clearer picture of the true employment situation than if it looked at only the number of unemployed workers. Which of the following statements correctly describe discouraged searchers? Check all that apply. C They have not looked for work during the past four weeks. They are available for work. C I: They would like to have jobs. C They are employed workers who want to earn higher wages. Consider a hypothetical economy in which the labour force consists of 100 people. Of those, 85 people are employed full-time and 15 people are unemployed. The government of this economy follows the same conventions as Statistics Canada in computing its employment gures. The unemployment rate is simply the number of unemployed people divided by the number of people in the labour force. Initially, then, the unemployment rate is (15/100) x 100% = 15.0%. Suppose a reduction in foreign demand for this economy's products causes an economic recessiona prolonged period of declining output. The following table offers two different possible scenarios resulting from the recession. Calculate the unemployment rate associated with each scenario. Unemployment Rate Scenario A: Firms reduce work hours by 25%. The number of underemployed workers rises as rms V respond to the reduction in the demand for their products by reducing the hours of each employed person from 40 to 30 hours per week. Scenario B: Firms reduce employment by 25%. The number of unemployed workers rises as rms V respond to the reduction in the demand for their products by laying off 21 previously employed workers. The unemployment rate in scenario A V the true extent of underemployment in the economy, because Statistics Canada counts part- time workers as employed. The three people described in the following table are categorized as unemployed by Statistics Canada. Identify each person in the table as structurally, frictional/y, or cyclically unemployed. through a recession. She has no clients and is currently looking for a new full-time job. The following table shows data on frictional, cyclical, structural, and total unemployment for an economy. Rate Unemployment Type (Percent) Frictional 1.1 Cyclical 0.0 Structural 3.9 Total unemployment 5.0 True or False: This economy is currently at its natural rate of unemployment. 0 True 0 False Unemployment TYpe Structural Frictional Cyclical Beth just moved with her husband to Calgary, Alberta. She's looking for a job as a paralegal. O O 0 Andrew recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualies, so he has been 0 O O unable to find work. He continues to look for a job, but he's considering going back to school for vocational training. Eleanor is a real estate agent. House sales in her area have declined because the region has been going 0 O O