{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

quanda28

# quanda28 - Chapter 28 1 Use the following information about...

This preview shows pages 1–2. Sign up to view the full content.

Practice Questions to accompany Mankiw & Taylor: Economics 1 Chapter 28 1. Use the following information about Employment Country to answer question 1. Numbers are in millions. a. What is the labour force in 2004 and 2005? Answer: 2004: 7.4 + 105.2 = 112.6 million 2005: 8.1 + 104.2 = 112.3 million b. What is the labour force participation rate in 2004 and 2005? Answer: 2004: (112.6/168.2) x 100 = 66.9% 2005: (112.3/169.5) x 100 = 66.3% c. What is the unemployment rate in 2004 and 2005? Answer: 2004: (7.4/112.6) x 100 = 6.6% 2005: (8.1/112.3) x 100 = 7.2% d. From 2004 to 2005, the adult population went up while the labour force went down. Provide a number of explanations why this might have occurred. Answer: Earlier retirements, students staying in college longer, more parents staying at home with children, discouraged workers discontinuing their job search. e. If the natural rate of unemployment in Employment Country is 6.6 percent, how much is cyclical unemployment in 2004 and 2005? Is Employment Country likely to be experiencing a recession in either of these years?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

quanda28 - Chapter 28 1 Use the following information about...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online