3- The national statistics office announces that 139,455,000 were employed, 15,2

Question

3- The national statistics office announces that 139,455,000 were employed, 15,260,000 were unemployed and 82,614,000 were not in the labor force. Calculate: a. Labor force b. Population c. Unemployment rate d. Labor force participation rate 4. Boubyan Bank holds KD250 million in deposits and maintains a reserve ratio of 10%), a. Show a T-account for Boubyan Bank. b. Now suppose that a large depositor deposits KD10 million in the bank, how will this affect the money supply in the economy? C. If the government decides t decrease the subsidies it gives to its people and impose taxes, how will this affect the money supply in the economy, value of money and inflation? Illustrate graphically

Explanation / Answer

3. a. The labor force includes all employed and unemployed people. So, labor force = employed + unemployed = 139,455,000 + 15,260,000 = 154,715,000.

b. Population consists of the labor force and the peopel out of labor force. So, population = labor force + people out of labor force = 154,715,000 + 82,614,000 = 237,329,000

c. Unemployment rate = unemployed/labor force * 100 = 15,260,000/154,715,000 * 100 = 0.0986 * 100 = 9.86%

d. Labor force participation rate = labor force / population * 100 = 154,715,000/237,329,000 * 100 = 0.6519 * 100 = 65.19%

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.