Question

The labor force of a country is 133 million. Among the labor force 6 million are in frictional unemployment, 14 million are in structural unemployment, and 6 million are in cyclical unemployment. If country's potential GDP is $326 billion, then the value of the economic loss (in negative values) due to cyclical unemployment is: 

          The labor force of a country is 133
million. Among the labor force 6
million are in frictional
unemployment, 14 million are in
structural unemployment, and 6
million are in cyclical unemployment.
If country's potential GDP is $326
billion, then the value of the
economic loss (in negative values)
due to cyclical unemployment is:
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The labor force of a country is 133 million. Among the labor force 6 million are in frictional unemployment, 14 million are in structural unemployment, and 6 million are in cyclical unemployment. If country's potential GDP is 326 billion, then the value of the economic loss (in negative values) due to cyclical unemployment is:

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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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The labor force of a country is 133 million. Among the labor force, 6 million are in frictional unemployment, 14 million are in structural unemployment, and 6 million are in cyclical unemployment. If the country's potential GDP is $326 billion, then the value of the economic loss (in negative values) due to cyclical unemployment is:
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Transcript

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00:01 Hi to everyone here first we find size of labor force so labor force is number of people employed plus number of people unemployed? so 97 million plus 3 million employed unemployed okay, so it is 100 million second one labor force participation rate so labor for participation rate is given by labor force that is 100 million by population 125 million 100 % so it is 80 % okay, so third actual versus potential output actual output greater than potential because actual and employ meant rate 15 % lower than natural rate of employment that is 4 % this suggests economic is operating long term potential fourth one cyclic unemployment rate so it is actual rate of unemployment minus natural rate actual rate in 3 % minus natural rate 4 % so it is minus 1 if actual rate of unemployment increased to 5 % then cyclic unemployment rate would be actual rate of unemployment 5 % minus natural rate 4 % equals to 1 % okay fifth effect of discouraged worker rentering labor force you discourage worker renate the labor force renter labor force and find job so actual rate of unemployment to decrease because because number of unemployed individual would decrease that's all...
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