Full-time workers

7,000

Part-time workers

2,000

Unemployed and looking for work

600

Unemployed and not looking for work due to

discouragement over job prospects

500

Not working due to disability

300

Not working due to retirement

900

Under the age of 15

3,000

Total Population

14,300

a)What is the size of the labour force in this economy?

b. Calculate the Unemployment Rate for this economy. (5 points)

c. Suppose that the natural rate of unemployment is 5%. What is the cyclical unemployment rate? (5 points)