Use the information provided to estimate how much of the unemployment in Ames and El Centro in

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Use the information provided to estimate how much of the unemployment in Ames and El Centro in 2009 was cyclical and how much was natural. Explain your assumptions in arriving at your estimates.


The metro areas with the lowest and highest unemployment In December 2015, Ames, Iowa, had the lowest unemployment in the United States at 2.2 percent of the workforce. At the other end of the scale was El Centro, California, with 19.6 percent of its workforce unemployed.

In the depth of the 2008–2009 recession, the unemployment rate in Ames peaked at 5.7 percent. In El Centro, it peaked at 30.3 percent.

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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