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ECO 372 Week 2 Worksheet
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Week 2 Worksheet
What are discouraged workers? Are there likely to be more discouraged workers when the economy is booming or when the economy is in recession?
Even when the economy is strong, there will be some people who are unemployed because they recently entered the labor force or lost/left a job and are engaged in job search. What does this imply about the economy’s natural or full-employment rate of unemployment? Be specific.
Use the hypothetical data in the table below to calculate the Labor Force (in millions) and the rate of unemployment (as a percentage) in each year.Unemployed Employed
Year 1 9.6 million 150.4 million
Year 2 12.4 million 142.6 million
Year 1
Labor Force = unemployment rate =
Year 2
Labor Force = unemployment rate =
SOURCE: WWW.ROYALRESEARCHERS.COM
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