macro 28-29

labor force participation rate =

100 x Number in labor force/ adult population

unemployment rate =

100 x Number of unemployed workers / labor force

A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off many of its employees, including Deborah.

Cyclical

Eric is a 71-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda.

employed

Amy just graduated from college and is looking for a full-time position with an investment banking firm.

frictional

If there is no cyclical unemployment, the economy is at its ________ ________ of unemployment, equal to the sum of frictional and structural unemployment. In this case, because cyclical unemployment is 0.0%, the economy is at its ________ _________of unemployment.

natural rate

Lucia is a 13-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $20 per week.

not in the adult population

Kenji is a 44-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago.

not in the labor force

Paolo is a 17-year-old who just graduated from high school. He is taking it easy this summer, relaxing by the pool with his friends and family, and volunteering part-time at the local nursing home.

not in the labor force

Van recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.

structural

Ginny is a 25-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.

unemployed

Sharon is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work and interviewing for other editing jobs. She is thinking about going back to grad school if her job search doesn't succeed after a few more weeks.

unemployed