11 . Problems and Applications Q5

Economists use labor-market data to evaluate how well an economy is using its most valuable resource?its people. Two closely watched statistics are the unemployment rate and the employment-population ratio (calculated as the percentage of the adult population that is employed).

Indicate what happens to the unemployment rate and the employmentpopulation ratio in each of the following scenarios. Effect 0n... EmploymentPopulation Scenario Unemployment Rate Ratio Many previously laidoff workers nd jobs in new startup rms as the economy 7 v expands. After an unsuccessful search, some laid-o workers decide to go back to school as v v full-time students. As a result of an economic boom, many students drop out of school and start 7 v working as soon as they become adults. Advances in health ca re prolong the lives of many retirees. v v