Principles of Economics- Mankiw (5th) 585

Principles of Economics- Mankiw (5th) 585 - CHAPTER 26 U N...

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CHAPTER 26 UNEMPLOYMENT AND ITS NATURAL RATE 603 1. The Bureau of Labor Statistics announced that in December 1998, of all adult Americans, 138,547,000 were employed, 6,021,000 were unemployed, and 67,723,000 were not in the labor force. How big was the labor force? What was the labor-force participation rate? What was the unemployment rate? 2. As shown in Figure 26-3, the overall labor-force participation rate of men declined between 1970 and 1990. This overall decline reflects different patterns for different age groups, however, as shown in the following table. M EN M EN M EN A LL M EN 16–24 25–54 55 AND OVER 1970 80% 69% 96% 56% 1990 76 72 93 40 Which group experienced the largest decline? Given this information, what factor may have played an important role in the decline in overall male labor-force participation over this period? 3. The labor-force participation rate of women increased sharply between 1970 and 1990, as shown in Figure 26-3. As with men, however, there were different patterns for
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