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

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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
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This note was uploaded on 07/06/2009 for the course BUS BAM303 taught by Professor Na during the Spring '09 term at 東京大学.

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

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