Unemployment Question Assume a city called Macroland, where the total population is 80,000. Of that 50,000...

Unemployment Question

Assume a city called Macroland, where the total population is 80,000. Of that 50,000 are people between the ages of 18 and 65, and 10,000 below 18 and the rest above 65. In the month of January in Macroland, the number of people in the 18 to 65 years old group that have jobs are 35,000 people, The number in that age group looking for jobs are 7,000 people. Answer all parts to the question for the population between ages of 18 and 65 only. You may type the answer on text if possible or upload a file.

a. How many people are in the labor force?

b. How much is the unemployment rate ?

c. How much is the labor force participation rate?

Now assume in the month of February in Macroland there were some changes in the labor market. Of the people who were employed, 6000 lost their jobs but only 4500 of the 6000 who lost jobs were interested in looking for jobs. Of the people in January who were unemployed, 2000 got jobs, and 800 stopped looking for jobs.

d. Given the changes, what is the labor force of Macroland in February?

e. How much is the unemployment rate in February?

f. How much is the labor force participation rate in February?

g. How many discouraged workers were there for changes between January and February?

Expert Solution

Rahul Sunny answered 7 months ago

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