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An economy has a potential workforce of 100M people and a labor-force participation rate of 80%. ...
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An economy has a potential workforce of 100M people and a labor-force participation rate of 80%. ...
An economy has a potential workforce of 100M people and a labor-force participation rate of 80%. There are currently 8M people classified as unemployed. The next month, the potential workforce remains the same size and no new people enter the labor force. The economy generates 2M new jobs. However, 4M unemployed workers become discouraged with not being able to find a job and stop looking for work. What is the new unemployment rate?
▸ 7.5%
▸ 2.6%
▸ 6%
▸ 4%
Textbook
Macroeconomics
Edition:
3
rd
Authors:
Acemoglu, Laibson, List
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this is exactly what I needed
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