The number of employed persons in an economy, in 2019 is 130m. While the number of unemployed persons was 10m. The adult population was 220m. Calculate the size of the labour force, the labour force participation rate and the unemployment rate.
A different economy has an unemployment rate of 9%, a labour force of 20m and a labour force participation rate of 60%. Calculate the number of employed and unemployed persons in this economy, and the size of the adult population.
The relation between the unemployment rate and the inflation rate is given by: u=u_n-2(π-π^e). If u_n=4% & π=π^e=2% what is the current unemployment rate? Illustrate your answer.
If inflation expectations increase: π^e=4% calculate the new rate of unemployment and add this to your diagram in c.
The relation between the unemployment rate and the inflation rate for a second economy is given by: u=u_n-0.5(π-π^e). If u=6%, π=3% & π^e=1%, calculate the natural rate of unemployment.