1. Textbook question 7 (p. 165) is reproduced below. "On the basis of the following data:

Frictional unemployment rate = 2% Natural unemployment rate = 5%

Civilian Labor Force = 100 million Number of employed persons = 82 million

Compute the following:

1. The unemployment rate

1. The structural unemployment rate

1. The cyclical unemployment rate

1. Given the information in Q12 above, can you compute the employment rate? If yes, what is it? If no, why not?

1. Classify each of the following into the appropriate category of unemployment:

cyclical = C; structural = S; frictional = F

1. A computer programmer who quits his job to look for a job with better benefits
2. A recent business school graduate looking for her first job
3. A welder who finds that robots have replaced most of the welding jobs on assembly lines
4. An unemployed auto assembly line worker during a sales slump
5. A car mechanic who has not kept up with the latest electronics technologies