Question

The nation of Cliffordia has a working-age population of 200 million people. Currently, 100 million people have full-time jobs and another 35 million people have part-time jobs. Of the 25 million people who would like a job but are not currently employed, 15 million are actively engaged in searching for a job while 10 million have given up looking for a job. 1. How many people are currently in the labor force of Cliffordia? 2. Calculate the labor force participation rate. Show your work. 3. What is the total number of people counted as unemployed? 4. Calculate the unemployment rate. Show your work. 5. Suppose that the 10 million people who have given up looking for a job suddenly all decide to start looking for a job. Calculate the new number of people in the labor force. 6. If these 10 million people enter the labor force, will the new unemployment rate be greater than or less than the unemployment rate you calculated in question #4? Explain your reasoning. 7. Explain why the change in the unemployment rate in question #6 exemplifies one of the main criticisms of the unemployment rate.

          The nation of Cliffordia has a working-age population of 200 million people. Currently, 100 million people have full-time jobs and another 35 million people have part-time jobs. Of the 25 million people who would like a job but are not currently employed, 15 million are actively engaged in searching for a job while 10 million have given up looking for a job.

1. How many people are currently in the labor force of Cliffordia?
2. Calculate the labor force participation rate. Show your work.
3. What is the total number of people counted as unemployed?
4. Calculate the unemployment rate. Show your work.
5. Suppose that the 10 million people who have given up looking for a job suddenly all decide to start looking for a job. Calculate the new number of people in the labor force.
6. If these 10 million people enter the labor force, will the new unemployment rate be greater than or less than the unemployment rate you calculated in question #4? Explain your reasoning.
7. Explain why the change in the unemployment rate in question #6 exemplifies one of the main criticisms of the unemployment rate.

Added by Julia G.

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