In: Economics
The country of Econometrix has the following statistics.
Population: 22.5 million
Population under the age of 16 years: 7.5 million
Discouraged workers: 200,000.
Retired people: 1 million
Structurally unemployed people: 200,000
Frictionally unemployed people: 200,000
Cyclically unemployed people: 2.2 million
Using only these statistics above, answer the following four parts. Show full calculations.
i. What is the labour force participation rate in economy
X?
ii. What is the current total unemployment rate in economy X?
iii. What is the percentage of the adult labour force that is
employed?
iv. In percentage terms, how much new unemployment occurred in
economy X after it went into a recession?