Question

2. Complete the following sentences:

i. If the unemployment rate is rising and the labor force participation rate is rising, then the unemployment rate rose because

ii. If the unemployment rate is falling and the labor force participation rate is falling, then the unemployment rate fell because

iii. If the unemployment rate is rising and the labor force participation rate is falling, then the unemployment rate rose because

3. Classify the following individuals as employed (E), unemployed (U) or out of the labor force (NFL). If the individual is unemployed, identify the type of unemployment.

a. A college graduate spends the summer following graduation on a volunteer service trip to Venezuela before beginning her job search.

b. A college student advertises her willingness to pet sit but no one purchases her services.

c. A part-time college instructor is only able to find two classes to teach this semester, though he would like to work full-time.

d. After completing nursing school, Sarah has spent three months searching for a job in rural Missouri.

e. Mike lost his job at the financial services company when the country experienced a recession. He continues to search for a new position.

f. Recently, Mel has reduced Flo’s hours at the diner from 40 hours per week to 25 hours per week. Flo is frantically searching for a new full-time job while she continues to work at the diner.

g. Recently, Mel has reduced Flo’s hours at the diner from 40 hours per week to 25 hours per week. Flo is frantically searching for a new full-time job while she continues to work at the diner.

h. Melanie lost her position with a contemporary dance company when the new artistic director added the requirements that dancers be accomplished tap dancers. Melanie is searching for another position, because she never learned to tap.

Answer 1

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Question:

2). Answer:

Labor force participation = Labor Force / Population

Unemployment rate = Unemployed people / Labor force

i. If the unemployment rate is rising and the labor force participation rate is rising, then the unemployment rate rose because- Increasing labor force in which number of unemployed people is rising.

ii. If the unemployment rate is falling and the labor force participation rate is falling, then the unemployment rate fell because - Decreasing unemployed people with increasing population.

iii. If the unemployment rate is rising and the labor force participation rate is falling, then the unemployment rate rose because - Increasing unemployed people with decreasing population.

3. Classify the following individuals as employed (E), unemployed (U) or out of the labor force (NFL). If the individual is unemployed, identify the type of unemployment.

3). Answer:

a). Answer:

Frictional Unemployment

b). Answer:

Cyclical Unemployment

c). Answer:

Structural Unemployment

d). Answer:

Frictional Unemployment

e). Answer:

Cyclical Unemployment

f). Answer:

Frictional Unemployment

g). Answer:

Seasonal Unemployment

h). Answer:

Structural Unemployment

There are many type of unemployment. these are following as:-Seasonal Unemployment, Structural Unemployment, Cyclical Unemployment, Frictional Unemployment

Seasonal unemployment is cause of seasonal shift, cyclical unemployment is cause of economic downturn, structural unemployment is occur due to gap of skills or technological advancement and frictional unemployment is occur due to left job for changing career.

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