DISCUSSION 4 Business Cycles and Unemployment 1. What phase of the business cycle is our economy experiencing at the present time? Justify your answer. 2. Complete Labor Data for AU Land. Show calculation to support your answer Year 2018 2019 2020 Adult population 2,000 2,500 3,200 Number of employed 1,400 1,400 1,800 Number of unemployed 200 200 600 Labor force Adult not in labor force Unemployment Rate Labor force participation rate3. Indicate whether the following people are employed, unemployed, or out of the labor force. If they are unemployed indicate whether their unemployment is structural, cyclical, or frictional, if possible. a) Catherine is a ski instructor who is not working because it is summer. b) Nicholas was laid-off when orders for General Motors cars fell during a recession. c) Susan quit her job as a preschool teacher to try to find a better paying job. d) Alice quit her job to enter college. e) Mary is working a part time job while she looks for a permanent position f) Mrs. Mckosky has shorthand and typing skills and still finds herself unemployed. g) John is a full-time college student who is not working and is not looking for a job. 4. Labor Data of a small village Full -Time Employed = 80 Part -Time Employed = 25 Unemployed = 15 Discouraged Workers = 5 Members of underground Economy = 6 a) Refer to the given information. What is the unemployment rate? b) Refer to the given information. If the members of the underground economy are presently counted as part of the unemployed when in fact they are employed, the official unemployment rate is overstated by about?5. Suppose that the adult population is 6 million, the number of employed is 4 million, and the labor-force participation rate is 80%. a) What is the number of unemployed? b) What is the unemployment rate? c) Suppose the natural rate of unemployment (NRU) is 10%, what is the cyclical unemployment rate