Question

Please help me with questions 5,6,7,8- Thank you!!! I want to make sure I answer them correctly

UIZNIS d. Investment has little to no impact on a nation's future economic health 5. True of false. Investment is financed by the national savings. a. True b. False 6. The unemployment rate equals divided by a. Labor force, employed b. Unemployed, labor force c. Discouraged workers, labor force d. Labor force, adult population 7. Suppose that 1,000 actively employed adult workers decide to retire from the labor force. What impact will this have, holding all else constant, on the employment and unemployment rates? a. The employment rate will fall and the unemployment rate will rise b. The employment rate will rise and the unemployment rate will fall c. Both rates will rise d. None of the above Joan Smith is running for the state Governor's office. As part of her campaign platform, she has promised, if elected, to permanently lower the unemployment rate in her state to 2 percent. Why is this promise silly and misleading? a. Due to frictional and structural unemployment, a rate below 7 percent is not likely b. The business cycle is the sole determinant of the unemployment rate, and the Governor has no control over that Due to frictional and structural unemployment, an unemployment rate below approximately 5 percent is next to impossible to sustain for any length of time d. Because a low unemployment rate is not desirable for the economy and its members

Answer 1

a) True, investments are financed by the national savings in the long run and in the short run.

b) unemployment rate = number of people unemployed / labor force, the answer is "B".

c) "D"

None of the above, because the employment rate will remain the same because employment rate is employed people / labor force.

This will take equal number of people out of both the employed and labor force leaving the ratio same.

d) "C"

To reduce the unemployment rate below the natural rate is difficult in the long run.