Unemployment: Show how you get your answers below. This means first write down the equation you are using, then plug in the numbers and then finish the calculation. You will not get full credit by just reporting your final answers. Part 1. Data from January 2006 Civilian noninstitutionalized population over the age of 16 228,815,000 Labor force participation rate 66.18% Number of discouraged workers 377,000 Number of people seeking work 7,001,000 a. Use the above data to calculate the unemployment rate in January 2006. Be sure to write down any formulas you use to calculate the unemployment rate and plug in your numbers to get full credit. b. U4 is a method of calculating unemployment that includes the official count of unemployed workers plus discouraged workers. Discouraged workers are those workers who have been engaged in job search activities and say that they want a job but are not actively looking due to discouragement overjob prospects. Calculate the January unemployment rate if we included the number of discouraged workers in the calculation. (Hint: in part a. the labor force does not include these discouraged workers. Persons not in the labor force: httgs:[gwww.bls.govgnewsreleasegemgsit.t16.htm) c. Use this link to FRED (the economic research website for the Federal Reserve Bank of St. Louis) htt s: fredstlouisfedor series NROU to find and report the noncyclical rate of unemployment in January 2006 {this is what we call the natural rate of unemployment or the NRU in class.) You will be looking at a graph. Calculate the cyclical unemployment rate in January 2006? Show your work. Part 2. Data from September 2010 The civilian noninstitutionalized population over the age of 16 increased to 237,830,000 and the size of the labor force was 153,889,000. The number of people seeking work increased to 14,825,000. d. Calculate the labor force participation rate in September 2010. Show your work. e. Calculate the unemployment rate in September 2010. Show your work. f. Use this link to FRED {the economic research website for the Federal Reserve Bank of St. Louis) htt s; fred.stlouisfed.or series NROU to find and report the noncyclical rate of unemployment in September 2010 (this is what we call the natural rate of unemployment in class.) You will be looking at a graph. Calculate the cyclical unemployment rate in September 2010? Show your work. Write a paragraph {5 to 10 sentences) to explain what you think your result from the previous questions tell you. Be sure to talk about your differences in the labor force participation rate and the unemployment rate. You might want to look at the following graph of Real GDP to support your paragraph: htt s: fred.st|ouisfed.or series GDPCl {If you are interested, here is a link to a website that explains alternative measures of unemployment: https:gwwwblsgovlaugsta|t.htm These measures are more precise than the overall measurement. The above data are found at this website: httgs:gredstlouisfedcrgg)