The following charts show the labor force participation rates and unemployment rates for 25-34 year olds and 55-64 year olds between the first quarter of 2008 and the third quarter of 2009: LFPR_25-34 (in %) LFPR_55-64 (in %) 83.6 66.0 83.4 65.5 83.2 65.0 83.0 64.5 82.8 64.0 82.6 82.4 63,5 82.2 63.0 Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 u_25-34 (in %) u_55-64 (in %) 12.0 8.0 7.0 10.0 6.0 8.0 5.0 6.0 4.0 3.0 4.0 2.0 2.0 1.0 0.0 0.0 Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 The trends in 3 out of 4 graphs are clear. The labor force participation rate of 55-64 year olds is less clear, so we will make the following assumption: Ignoring the ups and downs the labor force participation rate of 55-64 year olds was roughly constant. Use the following notation for this questions: U is the number of unemployed, N the number of employed, POP the population (in each age bracket), u is the unemployment rate and LFPR is the labor force participation rate. Assume that the population in each age bracket is constant over this time frame. For each of the following events assume that x individuals take the action given and that nothing else happens in the labor market. Show in each case what happens to the unemployment rate and the labor force participation rate by using the equations for both measures. Clearly mark if the variable increases (1), decreases (4) or stays constant (+). a. Individuals from the 25-34 age group, who were previously unemployed, decide to go back to school (college or grad school) as full-time students. b. Individuals from the 25-34 age group, who were previously employed, decide to go back to school (college or grad school) as full-time students. . Individuals from the 25-34 age group, who were previously employed, lose their jobs and start looking for new ones. d. Individuals from the 55-64 age group, who were previously employed, decide to retire. . Individuals from the 55-64 age group, who were previously unemployed, decide to retire early. f. Individuals from the 55-64 age group return to the labor market from early retirement, start looking for a job but haven't found one yet.