The Table Below Shows the Percentage of the Labour Force

question 15

Multiple Choice

The table below shows the percentage of the labour force accounted for by males and females over a two-decade period.Assume that real GDP is equal to potential in each of the given years. % of Labour Force TABLE 30-4
Refer to Table 30-4.Suppose that for each year listed the unemployment rate among males is 5% while it is 7% among females.What is the economy's NAIRU in 1975?

• A)5.0%
• B)5.5%
• C)5.6%
• D)5.7%
• E)5.8%

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Definitions:

Rate of inflation

The percentage increase in the general price level of goods and services in an economy over a period of time.

Purchasing power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Compounded monthly

A method where interest is calculated on the principal and any accumulated interest each month, effectively increasing the amount on which future interest is earned.

Deferral period

A span of time during which payments, obligations, or other actions are postponed or delayed.