Unemployment.
Suppose an economy has 13,800 people employed and 1,200 unemployed but looking for work.
a. According to the data, what is the unemployment rate for this economy? Show your work.
b. If 1,000 people lose their jobs and immediately begin looking for work, what is the new unemployment rate? Show your work.
c. Go back to the original numbers but, this time, suppose that 1,000 people lose their jobs and none of them look for work ever again. What is the new unemployment rate? Show your work.