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(25 pt) Purpose of this question: Review labor market denitions, do basic calculations and connect the results to class discussion of labor markets....

What explains the sharp decrease in the unemployment rate in the United States in 2009?


I've been given the following table and asked to calculate the empty cells. After calculating the unemployment rates, I found out that the sharpest change in the unemployment rate was experienced in 2009.


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I need help to answer the following question:


b) In which year did the economy witness the sharpest change in the unemployment rate? What might explain this?


I understand the recession of 2008 - 2009 plays a major role in the decrease in unemployment rate, but what other factors are at play?

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1. (25 pt) Purpose of this question: Review labor market definitions, do basic calculations and connect
the results to class discussion of labor markets. Data is taken from St. Louis Federal Reserve, FRED
II data base. The following table shows the annual averages of the employment level, unemployment level, and the
labor force participation rate in the United States in the years from 2006 to 2016. Number Labor Force Employment Unemployment Labor Force Working Age Unemployed Participation Rate1 Rate Population” m 11,741,000 144,006,000
H. 146,222,000
E. 143,742,000 1 The employment rate is the fraction of the labor force employed.
*Working age population is referred to in the textbook as potential workers and is the civilian non-institutional
population ages 16 and over. (a) (5 pt) Use the given data and complete the table above. Round labor force and population
numbers to the nearest 100,000 and employment and unemployment rates to the nearest
decimal.

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