Unit 5 Written Assignment Solution.pdf - Nancy Silverio...

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/ Home 1) What is its unemployment rate? Answer: The unemployment rate is 10%: (10,000/ (90,000 + 10,000)). (30 points) 2) Now suppose 4,000 of the people looking for work get discouraged and give up their searches. What happens to the unemployment rate? Answer: When 4,000 people give up looking for work, they’re no longer counted as unemployed. The unemployment rate falls to 6.2%: (6,000/ (90,000 + 6,000)). (35 points) 3) Would you interpret this as good news for the economy of bad news? Explain. Answer: This doesn’t appear to be good news, even though the unemployment rate has fallen. The fact that so many people have given up their searches may indicate that they confront structural unemployment and don’t expect to be able to adjust their skills to the demands of the workplace. (35 points) Last modi±ed: Thursday, 9 April 2020, 11:34 PM

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