Question: Based on the two tables we can determine that (a) (b) (c) (d) Alex is risk neutral and Brooke is risk averse. Brooke is


Based on the two tables we can determine that (a) (b) (c) (d) Alex is risk neutral and Brooke is risk averse. Brooke is more risk averse than Alex. Both Alex and Brooke are risk averse. Alex is risk averse while Brooke is risk neutral. Utility Wealth $12,000 3 5 $14,000 $16,000 8 $18,000 11 $20,000 15 Wealth Utility $12,000 3 $14,000 $16,000 $18,000 $20,000 5 7 9 11 Country A's adult population is 100 million, and it is likely to increase by 5% next year. The unem- ployment rate is currently 5%. The economists estimate that for a 1% increase in the labor force, the number of unemployed people increases by 2%. Assume that the labor force participation rate remains the same at 60% across the years. What will be the unemployment rate next year?
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