ECMA06_Midterm_Winter_2009_VA detailed solutions

ECMA06_Midterm_Winter_2009_VA detailed solutions -...

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University of Toronto Scarborough ECMA06 – Introduction to Macroeconomics: A Mathematical Approach Midterm Detailed Solutions, Winter 2009 Version A Question 1 In the past decade, the labour force participation rate in Canada is approximately equal to: A) 91% B) 82% C) 77% D) 68% E) 56% F) 45% G) 34% H) 25% I) 16% J) 7% Question 2 – Question 3: For the economy in question, the size of the adult population is held constant at 31455. The pool of people who are not in the labour force (i.e., who do not have job and are not looking for work) is 10455. In addition, 16650 people have full-time jobs and 2850 people have part- time jobs. The remaining 1500 people are unemployed. Question 2 Based on the information given, in the initial period, this economy would have (rounded to 1 decimal place): A) An unemployment rate of 4.8% and an employment rate of 95.2%. B) An unemployment rate of 4.8% and an employment rate of 66.8%. C) An unemployment rate of 4.8% and an employment rate of 62.0%. D) An unemployment rate of 7.1% and an employment rate of 92.9%. E) An unemployment rate of 7.1% and an employment rate of 66.8%. F) An unemployment rate of 7.1% and an employment rate of 62.0%. G) An unemployment rate of 7.7% and an employment rate of 92.3%. H) An unemployment rate of 7.7% and an employment rate of 66.8%. I) An unemployment rate of 7.7% and an employment rate of 62.0%. Page 1 ECMA06 Midterm Solutions– Winter 2009
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J) None of the above. Question 3 In a later period, government policy helps industry generate 975 new full-time jobs. Of these 975 new job created, 478 are filled by people who were not in the labour force, while 315 are filled by people who were formerly unemployed and the remaining 182 jobs are filled by people who were formerly employed part time (this also means 182 part-time jobs disappear when these people move into the new jobs). In the later period, the unemployment rate is (rounded to 2 decimal places): A) 2.50% B) 4.71% C) 5.22% D) 5.84% E) 5.52% F) 3.77% G) 4.62% H) 5.78% I) 5.60% J) 4.78% Question 4 If Iris loses her job, and she decides to sit around home for a few weeks. Holding all else constant, A) The labour force participation rate is unaffected, and unemployment rate increases. B) The labour force participation rate decreases, and unemployment rate increases. C) The labour force participation rate increases, and unemployment rate increases. D) The labour force participation rate is unaffected, and unemployment rate decreases. E) The labour force participation rate decreases, and unemployment rate decreases. F) The labour force participation rate increases, and unemployment rate decreases. G) The labour force participation rate is unaffected, and unemployment rate is unaffected. H) The labour force participation rate decreases, and unemployment rate is unaffected.
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This note was uploaded on 12/21/2011 for the course ECONOMICS ECMA06 taught by Professor Dr.atamazaheri during the Spring '10 term at University of Toronto.

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ECMA06_Midterm_Winter_2009_VA detailed solutions -...

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