NOT: A the Unemployment Rate Is Calculated As: (Number of Unemployed

question 190

Essay

NOT: a. The unemployment rate is calculated as: (number of unemployed / labor force) x 100. Here the number of unemployed is not explicitly stated. To find the number of unemployed, subtract the number of employed from the labor force (since labor force = employed + unemployed). Once that is found, it is easy to find the unemployment rate.
b. The relevant population is calculated as: the total number of people in the labor force + the number of people not in the labor force. c. The labor-force participation rate is calculated as: (labor force / relevant population) x 100. Once you have found the relevant population from part b, you just need to use it in this equation
-What would one expect to happen to the labor-force participation rate if the following situations occurred?
a.A large percentage of the workforce retires.
b.The government begins to subsidize current workers who go back to school full-time to attain an advanced degree.
c.The government offers a transfer payment to discouraged workers and to unemployed workers.

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