Question

Questions 12-16 Gamma's Labour Force Metrics in 2019 Employment 20,000,000 Unemployment 2,000,000 Unemployment rate A=? Labour force BE? Labour force participation rate C=? Employment-population rate 65% Working-age population D=? Persons not of working age 12,000,000 12. Gamma's total labour force was a) 20 million b) 22 million c) 27 million d) 39 million Gamma's working-age population was a) 22,000,000 b) 29,329,765 c) 30,769,230 d) 31,236,762 Gamma's labour force participation rate was (1st decimal; no rounding) was a) 65.1% b) 68.4% c) 69.3% d) 71.5% Gamma's employment ratio a) 63.1% b) 65.0% c) 67.3% d) 68.5% Gamma's total population was a) 22,000,000 b) 36,923,076 c) 42,769,230 d) 44,923,076 17. Using an AD/AS model, describe what happens to Canadian prices and output in in the short run if the future profitability of Canadian businesses appears much brighter. Assume that the economy is currently in macroeconomic equilibrium.

Answer 1

12.Total labor force= employed labor+unemployed labor=20+2 =22 million

Hence, option B is correct

13. Employment -Population rate=65%=Employed population/Total working age Population=20million/Total working age population Hence, Total working age population=20/0.65=30.769230million=30,769,230

Hence, option C is correct

14. labor force participation rate= Total population employed or seeking employment/Total working age population=(20+2)/30.769230=0.715 or 71.5%

Hence Option D is correct

15. Employment ratio is same as employment to population ratio i.e Total employed population/ total working age population=65%

Hence ,option B is correct

16. Total population=Total working age population+Population not of working age=30,769,230(as calculated in 13)+12,000,000 (given)=42,769,230

Hence, option C is correct