National Static and Information Authority (NSIA) of Afghanistan defines unemployment as a satiation where an individual of age 14 year or above who are willing and able to do work but is not able to find a job or works less than 8 hours in one week. Using your knowledge of the topic, answer following questions. A. Suppose 2 Million in Afghanistan are unemployed. Out of these 2 Million unemployed people suppose 1 Million decides to start university education and become full time students. How this decision will affect the following given in i. ii, iii? i. The labor force participation rate (LFPR). (LFPR will increase, decrease or not effected. Explain your answer in a paragraph) ii. The size of the labor force (Labor Force will increase, decrease or not effected. Explain your answer in a paragraph) iii. The unemployment rate (Unemployment rate will increase, decrease or not effected. Explain your answer in a paragraph) B. Determine whether each of the following would be considered frictional, structural, seasonal, or cyclical unemployment in the economy of Afghanistan. Explain your answer in a paragraph. i. A Bakery employee who was hired for the Eid season is laid off after Eid.

ii. A worker is laid off due to reduced economic activities in the economy. iii. A new university graduate is looking for employment. iv. Kam Air has announced 100 vacancies of operational managers, but cannot find people with their required skills. C. Suppose that Afghanistan total Population 35 Million. Out of this 35 Million 13 million are children having age below 14 years. Assume labor force participation rate is 56 percent. Answer following questions. i. What is the size of Afghanistan labor force? ii. If 5 million adults are not working, what is the unemployment rate in Afghanistan?