(Labor Force, Labor Participation Rate and Unemployment Rate). [1.5 Marks]

1. In Year 1, country A has a labor force of 100, of whom 90 are employed. The remaining 50 people in the country are not in the labor force.

Calculate the employment ratio, the labor participation rate and unemployment rate.

Over the course of the year, 10% of the employed become unemployed, while 20% of the unemployed become employed; 5% of the employed leave the labor force, while 4% of those not in the labor force become employed. The population remains unchanged.

2) Fill in the following table. (Hint: It might be helpful to draw the flow diagram before answering.)

	In Year 1	In Year 2
Population	150	150
Labor Force	100
Employed
Unemployed

3) Calculate the employment ratio, the labor participation rate and unemployment rate. (Fractions suffice.)