The Macro Economy Today 14th Edition Bradley Schiller

PROBLEMS FOR CHAPTER 6
Name:
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1. According to Figure 6.1 (p. 114),
(a) What percentage of the civilian labor force was employed? %
(b) What percentage of the civilian labor force was unemployed? %
(c) What percentage of the population was employed in civilian jobs? %
2. If the unemployment rate in 2013 had been 5 percent instead of 7.4 percent,
(a) How many more workers would have been employed?
(b) How many fewer would have been unemployed?
3. Between 2000 and 2013, by how much did
(a) The labor force increase?
(b) Total employment increase?
(c) Total unemployment increase?
(d) Total output (real GDP) increase?
(Note: Data on inside covers of the text.)
4. If the labor force of 155 million people is growing by 1.2 percent per year, how many new jobs
have to be created each month to keep unemployment from increasing?
5. Between 1990 and 2000, by how much did the labor force participation rate (Figure 6.2) of
(a) Men fall? %
(b) Women rise? %
6. According to Okun’s law, how much output (real GDP) was lost in 2009 when the
nation’s unemployment rate increased from 5.8 percent to 9.3 percent? %
7. Suppose the following data describe a nation’s population:
Year 1 Year 2
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Population 300 million 310 million
Labor force 140 million 150 million
Unemployment rate 6 percent 6 percent
(a) How many people are unemployed in each year? Year 1:
Year 2:
(b) How many people are employed in each year? Year 1:
Year 2:
(c) Compute the employment rate (i.e., Number employed 4 Population) in each year. Year 1:
Year 2:
8. Based on the data in the previous problem, what happens (“up” or “down”) to each of the
following numbers in Year 2 when 1 million jobseekers become “discouraged workers”?
(a) Number of unemployed persons.
(b) Unemployment rate.
(c) Employment rate.
9. According to the News on page 125, in October 2009
(a) How many people were in the labor force?
(b) How many people were employed?
10. In 2013, how many of the 800,000 black teenagers who participated in the labor market
(a) Were unemployed?
(b) Were employed?
(c) Would have been employed if they had the same unemployment rate as
white teenagers?
(See Figure 6.4 for needed info.)
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