The following table shows labour market statistics for Albania and Argentina in 2019. All figures are...

 

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The following table shows labour market statistics for Albania and Argentina in 2019. All figures are the number of people, in thousands. Population Population of working age Labour force Out of labour force (inactive) Employed Unemployed Albania 2846 2368 1435 933 1275 160 Argentina 44490 22349 13432 8917 12237 1195 A. Calculate the participation rate, employment rate and unemployment rate for Albania and Argentina in 2019. Show your workings. (3 marks) B. Discuss which country (Albania or Argentina) has the stronger (i.e. best performing) labour market. Justify your answer. (3 marks) C. If an economy has low aggregate demand with high unemployment, then an automatic adjustment back to equilibrium could occur through a process of wage and price cuts in the labour market. Imagine that you are an Argentine worker who lost their job because of COVID-19 and you see many other workers in your country have also lost their jobs. How might this affect any adjustment back to equilibrium in the labour market? [max words: 250] (4 marks) The following table shows labour market statistics for Albania and Argentina in 2019. All figures are the number of people, in thousands. Population Population of working age Labour force Out of labour force (inactive) Employed Unemployed Albania 2846 2368 1435 933 1275 160 Argentina 44490 22349 13432 8917 12237 1195 A. Calculate the participation rate, employment rate and unemployment rate for Albania and Argentina in 2019. Show your workings. (3 marks) B. Discuss which country (Albania or Argentina) has the stronger (i.e. best performing) labour market. Justify your answer. (3 marks) C. If an economy has low aggregate demand with high unemployment, then an automatic adjustment back to equilibrium could occur through a process of wage and price cuts in the labour market. Imagine that you are an Argentine worker who lost their job because of COVID-19 and you see many other workers in your country have also lost their jobs. How might this affect any adjustment back to equilibrium in the labour market? [max words: 250] (4 marks)

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A Calculation of Participation Rate Employment Rate and Unemployment Rate For Albania Participation Rate Labour Force Population of Working Age 100 1435 2368 100 6064 Employment Rate Employed Populati... View the full answer