Question

Suppose the Australia Bureau of statistics reported in May 2018 that the population age 15 years to 65 years in Australia comprised the following categories: 14 million employed; 900,000 unemployed and the total population was 19 million.

1) What was Australia’s labour force that was not employed 2017

2) Calculate Australia’s population not included in labour force

3) Calculate Australia’s unemployment rate

4) Define demand pull inflation

Answer 1

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Question:

Answer:

1). Answer:

Employed People = 14 million

Unemployed People =  900,000

Total population = 19 million

Labor Force = Employed People + Unemployed People = 14900000

Population age 15 years to 65

Australia’s labour force that was not employed 2017:

Persons who are neither employed nor unemployed are not in the labor force.

19 million - 14.90 = 4.10 million

Australia’s labour force that was not employed 2017 = 4.10 million

2). Answer:

Australia’s population not included in labour force = 19 million - 14 million = 5 million

3). Answer:

Australia’s unemployment rate = (Unemployed people/Total labor force) ×100

= (900,000/ 14900000) * 100 = 6.04%

Australia’s unemployment rate = 6.04%

4). Answer:

Demand pull inflation:

Inflation is a general increase in prices and fall in the purchasing value of money. Demand pul inflation is a general increase in prices and fall in shortage in supply. When demand is increase more than supply then demand-pul inflation increases.

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