Unit 2
SHOW ALL CALCULATIONS
This assignment deals with unemployment and inflation calculations.
1. The table below gives employment and population values for hypothetical Country A. Calculate the missing values.
Country
Adult Population
Labor Force (a)
Employed
Unemployed
Unemployment Rate (b)
Labor Force Participation Rate (c)
A
120,000
60,000
4,500
2. The table below gives employment and population values for hypothetical Country B. Calculate the missing values.
Country
Adult Population (a)
Labor Force
Employed (b)
Unemployed
Unemployment Rate (c)
Labor Force Participation Rate
B
28,000
3,000
60.00%
3. The table below gives employment and population values for hypothetical Country C. Calculate the missing values.
Country
Adult Population
Labor Force
Employed (a)
Unemployed (b)
Unemployment Rate
Labor Force Participation Rate (c)
C
70,000
40,000
10.00%
4. How does the U.S. government officially measure employment and unemployment in the economy? Why is it usually stated that the official unemployment rate likely underestimates the actual level of unemployment in the economy?
5. In a hypothetical country, fifty years ago, the minimum wage was approximately $1.50 per hour. At the same time, a family with two adults and two children could live in that country for about $50 per week for food and necessities. Fifty years later, the minimum wage in that country is about $8.00 per hour and the cost of living has gone up to approximately $500 per week for an equivalent family of four. Discuss, in a 400-500-word essay, the changes that you assume has happened in that county’s economy because of the inflationary pressures experienced over that fifty years.


