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The table-below shows unemployment and labor force statistics for on economy Actual rate of unemployment 3% Natural rate of unemployment 49% Civilian, noninstitutional population age

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The table-below shows unemployment and labor force statistics for on economy Actual rate of unemployment 3% Natural rate of unemployment 49% Civilian, noninstitutional population age 16 and over 125 million Number of people employed full time 92 million Number of people employed part time 5 million Number of people unemployed 3 million Number of discouraged workers 2 million (a) Calculate the size of the labor force. Show your work. (b) Calculate the labor force participation rate. Show your work. (c) Given the state of the economy described in the table, is actual real output less than, greater than, or equal to potential real output? Explain. (d) Calculate what the cyclical unemployment rate would be if the actual rate of unemployment increased to 5 percent. Show your work. (e) Suppose discouraged workers reenter the labor force and find employment. Will the actual rate of unemployment increase, decrease, or stay the same

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