Suppose there are 180 million employed people and 20 million ...

[Lisaclaire]

Suppose there are 180 million employed people and 20 million unemployed people.
 
  a. What is the unemployment rate?
  b. Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers. What is the new unemployment rate?

Question 2

The burden of a tax falls entirely on buyers if ________.
 
  A) the price elasticity of demand is zero (perfectly inelastic)
  B) the price elasticity of demand is greater than 1
  C) the income elasticity of demand is high
  D) the price elasticity of supply is unitary elastic

[Athena23]

Answer to Question 1

a. The unemployment rate is (20 million unemployed  200 million labor force)  100 = 10.0 percent.
b. The unemployment rate is (15 million unemployed  195 million labor force)  100 = 7.7 percent.

Answer to Question 2

A

[Lisaclaire]

YES! Correct, THANKS for helping me on my review

[kthug]

Gracias!