Suppose the economy has a civilian noninstitutionalized population 16 years of age and older of 20...

Transcribed Image Text:

Suppose the economy has a civilian noninstitutionalized population 16 years of age and older of 20 million people and a labor force participation rate of 60%. Furthermore, suppose the natural rate of unemployment in the economy is 5%. If the current number of unemployed people is 2 million people, what is the rate of cyclical unemployment rate? Suppose the economy has a civilian noninstitutionalized population 16 years of age and older of 20 million people and a labor force participation rate of 60%. Furthermore, suppose the natural rate of unemployment in the economy is 5%. If the current number of unemployed people is 2 million people, what is the rate of cyclical unemployment rate?

Answer rating: 100% (QA)

To calculate the cyclical unemployment ratewe need to follow these steps Calculate th... View the full answer