Working-age population..................................12 million

Labor Force.....................................................10 million

Number of people employed.............................7.5 million

Number of people Involuntarily Unemployed.......1 million

Questions:

(a) Calculate the number of people not in the labor force.......(2 marks)

(b) Calculate Economy's A unemployment rate..............(2 marks)

(c) Calculate to Involuntary Part-Time rate for economy A. What does it tell economists? (2 marks)

(d) Suppose that, due to poor economic conditions, 250 000 people give up looking for work. Explain how this will affect economy A's unemployment will be affected. (4 marks)