The IMF World Economic Outlook reports the following unemployment rates:

i. What do these numbers tell us about the phase of the business cycle in

the three regions in 2011?

Region

United States

Euro area

Japan

2010

9.6

10.1

5.1

2011

9.0

10.9

4.5

2

ii. What do these number tell us about the relative size of their natural

unemployment rate?

iii. Do these numbers tell us anything about the relative size of their labor

force participation rates and employment-to-population ratios?