Consider the following information about an economy: Full-time employed = 80 Par

Question

Consider the following information about an economy:

Full-time employed = 80

Part-time employed = 25

Unemployed = 15

Discouraged workers = 5

Members of underground economy = 6

11.1.  

Refer to the above information. What is the unemployment rate? Round your answer to one decimal place.

% ________

Please enter 1 digit after the decimal point.

Consider the following information about an economy:

Full-time employed = 80

Part-time employed = 25

Unemployed = 15

Discouraged workers = 5

Members of underground economy = 6

11.2.  

Suppose the members of the underground economy are presently counted as part of the unemployed (the 15 unemployed includes the members of the underground economy) but, in fact they are employed in some illegal activities. By how much (as a percent) is the official unemployment rate overstated by?

_________%

Please enter a whole number, with no decimal point.

Use the following information about an economy to answer the next 2 questions:

Population = 223.6 million

Adult population = 168.2 million

Unemployed = 7.4 million

Employed = 105. 2 million

12.1.  

What is the rate of cyclical unemployment in this economy if the natural rate of unemployment equals 4.57%

_______%

Please enter a whole number, with no decimal point.

Use the following information about an economy to answer the next 2 questions:

Population = 223.6 million

Adult population = 168.2 million

Unemployed = 7.4 million

Employed = 105. 2 million

12.2.  

This economy is likely experiencing a recession.

True

False

Consider the following information about an economy:

Full-time employed = 80

Part-time employed = 25

Unemployed = 15

Discouraged workers = 5

Members of underground economy = 6

Explanation / Answer

Ans

Real unemployment rate=10/80+25+15 (100)=8.33%

Whioeas according to official statistics it is 15/120(100)=12.5%.so unemployment rate is 12.5%

B by 12.5-8.33=4%

Note discouraged workers aren't included in 120 since they aren't part of labour force

C unemployment rate =7.4/labour force (100)=7.4/105.2+7.4=6.57

Now cyclic=6.57-natural rate=6.57-4.57=2

D No not necessary. Unemployment rate is just 6.57% WHILEAS countries like France suffer 9% unemployment rate even when the economy is doing well

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