5. 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 employment-population ratio in each of the following scenarios.
Scenario
Many previously laid-off workers find jobs in new startup firms as the economy expands.
After a long search, some laid-off workers find new jobs.
As a result of an economic boom, many students drop out of school and start workong as soon as they become adults.
Advances in health care prolong the lives of many retirees.