Suppose the working-age population is 150 million, the labor ...

[luvbio]

Suppose the working-age population is 150 million, the labor force is 125 million, and employment is 120 million.
 
  a. What is the unemployment rate?
  b. Now suppose that 2 million students graduate from college and begin to look for jobs. What is the new unemployment rate if none of the students have found jobs yet?
  c. Suppose that all 2 million students find jobs. What is the unemployment rate now?

Question 2

When a good is imported, the domestic production of it ________ and the domestic consumption of it ________.
 
  A) increases; increases
  B) increases; decreases
  C) decreases; increases
  D) decreases; decreases
  E) increases; does not change

[nital]

Answer to Question 1

a. The unemployment rate is (5 million unemployed  125 million labor force)  100 = 4.0 percent.
b. The unemployment rate is (7 million unemployed  127 million labor force)  100 = 5.5 percent.
c. The unemployment rate is (5 million unemployed  127 million labor force)  100 = 3.9 percent.

Answer to Question 2

C

[luvbio]

Thank you

[nital]

No problemo