Increase, Decrease, or Stay the same

11 . Problems and Applications Q5 Economists use labormarket data to evaluate how well an economy is using its most valuable resourceits people. Two closely watched statistics are the unemployment rate and the employmentpopulation ratio (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment-population ratio in each of the following scenarios. Effect On... EmploymentPopulation Scenario Unemployment Rate Ratio Many previously laid-off workers find jobs in new startup rms as the economy V V expands. After an unsuccessful search, some laid-off workers quit looking for new jobs. 7 v As a result of an economic boom, many students drop out of school and start v 7 working as soon as they become adults. A stock market crash leads to large-scale lay-offs of workers aged 55 and above, v v who decide to retire instead of looking for new jobs