Question

1. Complete the table below and show your work:

Year	Total Employment (millions)	Unemployment Rate (percent)	Labor Force Participation Rate (percent)	Working-Age Population (millions)
1950	A	5,2	59,7	106,2
1970	80,8	B	61,0	139,2

Answer 1

(a) Year 1950.

Labor force participation rate = (Labor force / Working age population)

59.7% = (Labor force / 106.2)

Labor force = (59.7%) (106.2)

Labor force = 63.4014 million.

Unemployment rate = (Unemployed / Labor force)

5.2% = (Unemployed / 63.4014)

Unemployed = (5.2%) (63.4014)

Unemployed = 3.296

Unemployed = 3.30 million

Labor force = Employed + Unemployed

63.4014 million = Employed + 3.30 million

Employed = 63.4014 million - 3.30 million

Employed = 60.10 million.

Total employment is 60.10 million.

(b) Year 1970

Labor force participation rate = (Labor force / Working age population)

61% = (Labor force / 139.2)

Labor force = (61%) (139.2)

Labor force = 84.912 million.

Labor force = Employed + Unemployed

84.912 million = 80.8 million + unemployed

unemployed = 84.912 million - 80.8 million

unemployed = 4.112 million

Unemployment rate = (Unemployed / Labor force)

Unemployment rate = (4.112 / 84.912)

Unemployment rate  = 0.04842

Unemployment rate = 4.84%