Question

Adult population-150 million

Labor force-100 million

Employed persons-90 million

Discouraged workers-10 million

According to the table, the unemployment rate (U3) is ....? Assume that 10 million of the employed persons are part time for economic reasons. Then the U4 and U5 rates of unemployment as calculated by the BLS would be ____________ and ______________. Employed persons/ labor force = Unemployment Rate

Define the three major categories of unemployed persons and the public policies that might be adopted to reduce each type.

-Type of Unemployment

-Policy to alleviate

Indicate whether the following groups would probably be harmed if the inflation rate were to increase from 4% to 8%. Indicate with a (Y) for yes or a (N) for no.

1. Investors in long-term U.S. government bonds

2. Homeowners with largely fixed rate mortgages

3. Restaurant workers in Texas making the legal minimum wage

4. Software engineers

5. Retirees on a fixed income

Answer 1

Unemployment rate U3= total number of unemployed / labour force

Total number of unemployed= labour force - employed

= 100-90 =10 million

U3= 10/100 = 0.1

U4 and U5 include discouraged worker in the labour force.

U4 = unemployed + discouraged workers / (labour force + discouraged workers)

= (10+10)/(100+10) = 0.18

U 5 is also 0.18 as other marginally attached workers are not given.

Part time workers are not considered in U4 and U5. They are considered in U6.