Question

References Mailings Review View Ap Aa AalBbCcDdE AallbCeDdE AaBbCcD AaBbCcDdE AaBb A No Spacing Normal Heading 1 Heading 2 Tis 5. The town of Villageton has 500 residents, of which 300 are employed, 30 are not working but actively seeking work, 80 are children in school, 40 are retirees, 30 are full-time college students, and 20 are institutionalized. a. Calculate the unemployment rate in Villagetone[ 2 points] b. Suppose that 10 of the 30 college students graduate and enter the labor force actively seeking work, but only 5 find a job. How does this change the unemployment rate in Villageton? [2 points 6 Use the figure to answer the following question 4 points Label and describe the following points: a b d Time tes) AD

Answer 1

a) 500-300-30-80-40-30-20=0

So out of 330 work force 30 are unemployed, unemployment rate = 30/330 *100 = 9%

b) 10 graduate and 5 find jobs

Now total employed = 305, total unemployed = 35

Unemployment rate = 35/340*100 = 10.3%

c) The diagram shows stages of business cycle

a peak / slowdon

b recession

c Trough/ Recovery

d boom/ expansion