a) Describe the relationship between unemployment and real GDP.
b) The working age population is 68,690 and the labour force participation rate is 73.6%. Use this information to find the following.
i. Calculate the number of people in the labour force.
ii. If there are 5,500 people unemployed, what is the unemployment rate?
c) Suppose that the labour force decreases by 2,500 people. What would happen to the unemployment rate? Assume that the number of people unemployed does not change. Explain your answer by referring to the relevant equation.
d) Samsul has recently moved interstate and has not yet been able to find a new job as a financial advisor. Is Samsul frictionally unemployed, structurally unemployed or cyclically unemployed? Explain your answer.