Author Question: Suppose initially that the working-age population is 220 million, the labor force is 150 million, ... (Read 114 times)

nramada · **on:** Jun 29, 2018

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent.

5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate? A) 6.25 percent
B) 6.7 percent
C) 9.7 percent
D) 8.7 percent

Question 2

Which of the following is FALSE about saving?

A) Saving adds to wealth.
B) Income left after paying taxes can either be consumed or saved.
C) Saving equals wealth minus consumption expenditures.
D) Saving is the source of funds used to finance investment.