You should get all the answers right Dont answer it if you a

You should get all the answers right. Don\'t answer it if you are unsure and wants to give it a shot. Thank you.

The table below shows employment statistics for the fictional country of Summerlandia. Use the information to answer the following questions. Round your percentages to two l places. Category Employed Unemployed Not in the labor force Number of people 5805 452 551 What is the total labor force? What is the labor force participation rate? What is the unemployment rate? Number Number Number Suppose 256 of the 452 unemployed people have been unemployed for so long, they stop looking for work. What is the new labor force? What is the new labor force participation rate? What is the new unemployment rate? Number Number Number

Solution

Ans:

1)

a) Total labor force = employed + unemployed

                               = 5805 + 452

                               = 6257

b) Labor force participation rate = Labor force / total number of people eligible to participate in the labor force.

total number of people eligible to participate in the labor force = 5805 + 452 + 551

                                                                                                    = 6808

Labor force participation rate = 6257 / 6808

                                               = 0.9191 or 91.91%

c) unemployment rate = unemployed / labor force

                                    = 452 / 6257

                                    = 0.0722 or 7.22%

2)

a) New labor force = employed + unemployed

                              = 5805 + (452-256)

                              = 5805 + 196

                              = 6001

b) New labor force participation rate = Labor force / total number of people eligible to participate in the labor force.

total number of people eligible to participate in the labor force = 5805 + 196 + 807

                                                                                                   = 6808

New labor force participation rate = 6001 / 6808

                                                        = 0.8815 or 88.15%

c) New unemployment rate = unemployed / labor force

                                            = 196 / 6001

                                            = 0.0327 or 3.27%