Question 4

1. A news article stated, "The unemployment and labour force participation rate increased by 0.1 and 0.4 percent respectively". Is this positive news for the economy? Explain. 2 Marks
2. Define "under employment" and explain two ways a government can try to reduce it. 1.5 Marks
3. A politician stated, "If my party wins the election we will ensure that we achieve an unemployment rate of zero percent. Is this realistic. Explain. 1 Mark
4. Does the unemployment rate underestimates the true level of unemployment? Explain. 1.5 Marks