Suppose Xenia has a GDP of $16,000,000 and a population of 800,000 with a labor force...

Suppose Xenia has a GDP of $16,000,000 and a population of 800,000 with a labor force of 600,000. Further suppose that 80,000 people are not working, of which 60,000 are actively seeking employment and 20,000 have given up. Further suppose that the frictional rate of unemployment is 1% and 12,000 people are structurally unemployed. The UE rate in Xenia is ______.

The structural rate of unemployment is ______.

The number of people who are cyclically unemployed is _______.

The economic cost of unemployment is _______.

Now suppose that all of those who had “given up”, resume their job-search activity. In the immediate aftermath of this development:

The UE rate in Xenia is ______.

The frictional rate of UE is ______.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Suppose Xenia has a GDP of $20,000,000,000 and a population of 900,000 with a labor force...

Suppose Xenia has a GDP of $20,000,000,000 and a population of 900,000 with a labor force of 600,000. Further suppose that 60,000 people are not working, of which 48,000 are actively seeking employment and 12,000 have given up. Further suppose that the frictional rate of unemployment is 1% and the structural rate is 2%. Please use this info to answer the next six questions 30. The UE rate in Xenia is ______. 31. The cyclical rate of unemployment is ______....

Suppose that in Workolia: Population = 440 million, Ineligible Population = 140 m, Labor Force Participation...

Suppose that in Workolia: Population = 440 million, Ineligible Population = 140 m, Labor Force Participation Rate = 60%, Number of Employed = 172m and the Natural Rate of Unemployment = 5%. How much cyclical unemployment is there in Workolia? a. - 1.4% b. -.6% c. 1.4% d. 2.6% If unemployment is below the natural level of unemployment, which one of these statements MUST be true? Check all the ones that are true? a. Cyclical unemployment must be negative b....

1. A. Assume that the total population is 200, the size of the labor force is...

1. A. Assume that the total population is 200, the size of the labor force is 100, the amount of people employed is 90, and the amount of people unemployed is 10. Calculate the unemployment rate? B. In general, approximately what is the lowest unemployment rate that can reasonably expected and why?

Assume the total population of the US is 330 million, and the civilian labor force is...

Assume the total population of the US is 330 million, and the civilian labor force is 165 million. In the past 6 weeks, new claims for unemployment compensation totalled 30 million. a) If that 30 million comprises all of the unemployed, what is the current unemployment rate? b) If the NRU is 5%, what is the rate of cyclical unemployment? c) According to Okun's Law, what percentage of potential GDP is being foregone? What is the dollar value of foregone...

The labor force participation rate is calculated as: Select one: a. the percent of the population...

The labor force participation rate is calculated as: Select one: a. the percent of the population age 16 or older that is in the labor force. b. the percent of the entire population that is unemployed. c. the percent of the labor force age 16 or older that is employed. d. the percent of the population age 16 or older that is unemployed. Which of following is true about socialism? Select one: a. all of the above. b. prices are...

a) If population 16 or older = 208 million and labor force participation rate (LFPR) =...

a) If population 16 or older = 208 million and labor force participation rate (LFPR) = 65%, what is the size of the labor force? 0.65*208,000,000 = 135,200,000 b) In a given year, there are 10 million unemployed workers and 120 employed workers the country of Landia. Calculate the unemployment rate in Landia. 120/10,000,000 = 0.0012% 1-0.0012 = 0.9988 0.9988*100 = 99.88 Unemployment rate = 99.88% Show all your calculations for full credit. Use either a shift in demand of...

Given the following information: Total Population ………………………………………………………………400,000,000 Non – Adult Population ………………………………………………………80,000,000 Labor Force Participation Rate...

Given the following information: Total Population ………………………………………………………………400,000,000 Non – Adult Population ………………………………………………………80,000,000 Labor Force Participation Rate ………………………………………………..80% Employed …………………………………………………………………….. 240,000,000 (a) Please calculate the Adult Population and the labor Force. Please show all calculations for full credit (b) What is the unemployment rate? (c) If the cyclical unemployment rate is 3%, what is the natural rate of unemployment rate?

Suppose the annual inflation rate is at 7% and 3% of the labor force is unemployed....

Suppose the annual inflation rate is at 7% and 3% of the labor force is unemployed. If you were on the Federal Reserve's Open Market Committee, what action would you prescribe and why? How would this affect the economy, the inflation rate, and the unemployment rate?

Suppose the labor force increases in size due to a large level of immigration. At the...

Suppose the labor force increases in size due to a large level of immigration. At the same time real interest rates in a regular economy rise. What will happen in the economy? 1) Equilibrium price in the economy will rise, equilibrium quantity is ambiguous. 2) Equilibrium price in the economy will fall, equilibrium quantity is ambiguous. 3) Equilibrium price in the economy is ambiguous, equilibrium quantity will rise. 4) Equilibrium price in the economy is ambiguous, equilibrium quantity will fall.

U.S. Civilian Labor Force (thousands) Year Labor Force Year Labor Force 2007 168,954 2012 170,664 2008...

U.S. Civilian Labor Force (thousands) Year Labor Force Year Labor Force 2007 168,954 2012 170,664 2008 169,691 2013 170,187 2009 168,147 2014 171,274 2010 168,686 2015 172,993 2011 169,031 2016 174,676 Click here for the Excel Data File (a) Make a line graph of the U.S. civilian labor force data. Line Graph A Line Graph B Line Graph C Line Graph D Line Graph 1 Line Graph 2 Line Graph 3 Line Graph 4 (b) Describe the trend (if any)...

Subjects