1.Suppose Canada has a population of 30 million people and a labor force participation rate of 2/3. Furthermore, suppose the natural rate of unemployment in Canada is 7%. If the current number of unemployed people is 1.4 million people, what can we conclude about Canada’s economy?
a. There is no cyclical unemployment present in the economy.
b. There is cyclical unemployment present in the economy.
c. The unemployment rate is below the natural rate of unemployment.
d. The unemployment rate is above the natural rate of unemployment.
The correct answer is; a. There... View the full answer
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- Jun 29, 2017 at 6:02pm