Question

4. (25 points) Suppose you are in the economy of Upper East Side, with a total population of 100. There are three firms (Broadway, MODE publications, and Waldorf Designs) that provide employment to the residents of Upper East Side Currently, there are 15 people who work at Broadway, 25 at MODE publications, and 10 at Waldorf Designs. Calculate the Labor-Force participation rate, unemployment rate, Employment-Population Ratio for Upper East Side after incorporating the following infor mation providing justification for each step (a) The cast of CATS (10 people) is laid off at Broadway due to the lack of public dennand. 3 of these performers stop looking for more jobs. 1 gets incarcerated. 1 leaves the country (b) 5 Graduates of McKinley High (Ohio) situated in Ohio move to Upper East Side in search for a job but cannot find a job (c) 10 Graduates of New York Academy of Dramatic Arts (NYADA) find a job on Broadway (d) Coach Sue Sylvester, Jack Geller, Judy Geller, Claire Meade, and Eleanor Waldorf seek early retirement due to a stock market boom. (They are all residents of Upper East Side) (e) Dr. Meredith Grey and Dr. Cristina Yang's efforts fair well and they are able to advance the health conditions of Seattle residents leading to higher life expectancy

Answer 1

All the calculations are done taking each sub part as standalone cases.

General Terminology and abbrevations are used.

There's a sequential format of writing digits ( Bradway-> MODE-> Waldorf )

1. LFP = LF/P * 100

LF = 13(2 reduced) + 25 + 10 / 98 ( 2 reduced)

= 48/98 * 100 = 48.98%

U% = (Unemployed Labor / LF)*100 = (13/48)*100 = 27.08%

EP Ratio = Employement/ Population = 35/98 = 0.357

2.LFP = LF/P * 100

LF = (15 + 25 + 10) + 5 (Ohio) / 105 ( 5 Ohio guys added)

= 55/105 * 100 = 52.38%

U% = (Unemployed Labor / LF)*100 = (5/55)*100 = 9.09%

EP Ratio = Employement/ Population = 50 / 105 = 0.476

3.LFP = LF/P * 100

LF = (25(10 new added on Broadway) + 25 + 10) / 110 ( 10 NYADA guys added)

= 60/110 * 100 = 54.55%

U% = (Unemployed Labor / LF)*100 = (0/60)*100 = 0%

EP Ratio = Employement/ Population = 60 / 110 = 0.545

4.

.LFP = LF/P * 100

LF = (15+ 25 + 10) - 5 (5 people retired)/ 100

= 45/100 * 100 = 45 %

U% = (Unemployed Labor / LF)*100 = (0/45)*100 = 0%

EP Ratio = Employement/ Population = 45 / 100 = 0.45