In a country with a labor force of 200, a different group of 8
people becomes unemployed each month, but becomes employed once again a month later. No others outside these groups are unemployed.
Part 2
a. Calculate this country's unemployment rate%.
(Enter
your response as a percentage rounded to two decimal places.)
There are 8 unemployed people out of a labor force of 200, so the unemployment rate is:
(8/200) x 100% = 4%
Therefore, the unemployment rate is 4%.
b. The average duration of unemployment in this country is
The average duration of unemployment in this country is 1 month, since each group of 8 people becomes unemployed for one month and then becomes employed again the next month. Therefore, the average duration of unemployment is 1 month.
c. Suppose the establishment of a system of unemployment compensation increases to two months the interval that it takes each group of job losers to become employed each month. Nevertheless, a different group of 8
people still becomes unemployed each month. Now the average duration of unemployment is
With the new system of unemployment compensation, each group of 8 job losers takes 2 months to become employed again. This means that there will be 2 groups of unemployed people at any given time - the group that became unemployed in the current month, and the group that became unemployed the previous month.
So, the average duration of unemployment under the new system is:
(1 month for the current group + 2 months for the previous group) / 2 groups = 1.5 months
Therefore, the average duration of unemployment under the new system is 1.5 months.
ollowing the establishment of a system of unemployment compensation, calculate the country's unemployment rate. enter your response here
%
(Enter
your response as a percentage rounded to two decimal places.)
d. Following the establishment of a system of unemployment compensation, calculate the country's unemployment rate%.
(Enter
your response as a percentage rounded to two decimal places.)
With the new system of unemployment compensation, there are always 2 groups of 8 unemployed people, out of a labor force of 200. Therefore, the total number of unemployed people is 16, and the unemployment rate is:
(16/200) x 100% = 8%
Therefore, the unemployment rate with the new system of unemployment compensation is 8%.
To calculate the unemployment rate, we need to divide the number of unemployed people by the total labor force and multiply by 100 to express it as a percentage.
In this case, the number of unemployed people per month is 8, as stated in the question.
The total labor force is given as 200 people.
To calculate the unemployment rate, we can use the following formula:
Unemployment Rate = (Number of Unemployed / Total Labor Force) * 100
Plugging in the values:
Unemployment Rate = (8 / 200) * 100
Calculating the above expression:
Unemployment Rate = 0.04 * 100
Unemployment Rate = 4%
Therefore, the unemployment rate in this country is 4%.