Assume the following data for a country in millions T…
Assume the following data for a country in millions Total Population 500 Population under 16 or institutionalized 120 Not in the labor force 150 Unemployed 23 Part-time workers looking for full-time jobs 10 a) What is the size of the labor force? What is the official unemployment rate? (show work) (4) b) Assume that those that are not in the labor force declines to 100 and the number of unemployed increases to 50 (all other numbers stay the same). What is the size of the labor force now? What is the unemployment rate? show work(4) c) Explain how “good news” about the future of the economy can actually cause the unemployment rate to increase? (3) d) If you were running for political office, would you want to promote reducing the unemployment rate OR promote increasing the labor force? Explain using ideas from chapter 8 & 9.