PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 12, Problem 5RQ
To determine
Identify whether the statement is true or false.
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In a given community, the unemployment rate is 4% and
their working-age population is 930,000. Labor force
participation was 81% in this community in December of
2009. In January 2010 a new social security policy was
implemented, allowing people to retire and collect their
social security benefits earlier than expected. 200
thousand older workers retired at the end of January due
to the new policy. Further, 2000 senior citizens that were
out of the labor force (in December) started collecting their
social security retirement benefits in January due to their
past contributions. What is the Unemployment rate in
February assuming everything else was fixed at their
December values?
In a given community, the unemployment rate is 5% and their working-age population is 4 Million. Labor force participation was 82% in this community in December of 2009. In January 2010 a new social security policy was implemented, allowing people to retire and collect their social security benefits earlier than expected. 200 thousand older workers retired at the end of January due to the new policy. Further, 2000 senior citizens that were out of the labor force(in December) started collecting their social security retirement benefits in January due to their past contributions. What is the Unemployment rate in February assuming everything else was fixed at their December values?
( Please round your answer to include 2 decimal places, do not include the percent sign in the answer. That is, If you find 8.33333% is the new unemployment rate, input your answer as 8.33)
Suppose the number of employed people in Pakistan is 20.5 million. The unemployment rate in this economy is 8.8 percent, and the labor force participation rate is 65 percent.
What is the size of the labor force and working-age population?
How many people are unemployed?
Explain and analyze different government policies which affect the unemployment rate in Pakistan? ( Maximum 200 words).
Before June 2020, the labor market in Pakistan was at equilibrium with an equilibrium wage (WE) of Rs. 15,000 and equilibrium quantity of labor (LE) 10 million. In the last week of June, 2020, government of Pakistan imposed a minimum wage Act raising the minimum wage to Rs. 20,000. Using a graph, explain the effect of imposition of minimum wage on unemployment in labor market of Pakistan .
Chapter 12 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
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