Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working.
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Written Assignment Unit 4 University of the People ECON 1580 Introduction to Economics Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working. What is its unemployment rate? Now suppose 4,000 of the people looking for work get discouraged and give up their searches. What happens to the unemployment rate? Would you interpret this as good news for the economy or bad news? Explain. The total unemployment rate of an economy is the ratio of total number of unemployed to total workforce. Unemployment rate number of people unemployed/ Total work force and total work force equals to the total of employed and unemployed inside the economy. In this case; Unemployment rate 10,000/(90,00010,000) X 10010% Now if we...
