Use the following information about an economy to answer the next 2 questions: P
ID: 1162502 • Letter: U
Question
Use the following information about an economy to answer the next 2 questions:Population = 223.6 million
Adult population = 168.2 million
Unemployed = 7.4 million
Employed = 105. 2 million 12.1. What is the rate of cyclical unemployment in this economy if the natural rate of unemployment equals 4.57% %
Please enter a whole number, with no decimal point. Use the following information about an economy to answer the next 2 questions:
Population = 223.6 million
Adult population = 168.2 million
Unemployed = 7.4 million
Employed = 105. 2 million 12.2. This economy is likely experiencing a recession. True False Use the following information about an economy to answer the next 2 questions:
Population = 223.6 million
Adult population = 168.2 million
Unemployed = 7.4 million
Employed = 105. 2 million 12.1. What is the rate of cyclical unemployment in this economy if the natural rate of unemployment equals 4.57% %
Please enter a whole number, with no decimal point. Use the following information about an economy to answer the next 2 questions:
Population = 223.6 million
Adult population = 168.2 million
Unemployed = 7.4 million
Employed = 105. 2 million 12.2. This economy is likely experiencing a recession. True False
Explanation / Answer
12.1)
Labor force = Employed + unemployed = 105.2 + 7.4 = 112.6 million
Actual unemployment rate = (Unemployed / Labor force) × 100
= (7.4 / 112.6) × 100
= 6.57%
Cyclical unemployment = Actual – Natural
= 6.57 – 4.57
= 2% (Answer)
12.2)
Answer: True
Since the actual unemployment rate currently is higher than the natural rate, the economy may in the trough phase of business cycle; such phase is a recession.
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