Natural rate of unemployment	5%
Working-age population (sometimes only listed as population)	12,500
Number of part time workers	500
Number of discouraged workers	200
Number of employed	9,700
Number of unemployed	300

Macroland is a small island off the coast of Australia. Use the table above to answer the following questions. You MUST show complete work and your set-up must be 100% correct or no credit. I grade you like AP will grade you--do not skip any steps.

2. (a). What is Macroland's Labor Force Participation Rate? Show your work. (3 pts).

2. (b). What is Macroland's Actual Rate of Unemployment? Show your work. (3 pts).

2. (c). If discouraged workers decide to look for work again, will the actual rate of unemployment increase, decrease, or not change? (2 pts). Explain. (3 pts). 2. (d). How much of Macroland's Actual Rate of Unemployment represents cyclical unemployment? (1 pt). Explain. (3 pts).