Problems
Problem 2.1:
List 3 costs of unemployment.
[Solution]
Problem 2.2:
Please explain what is meant by Okun's law.
[Solution]
Problem 2.3:
Using Okun's law, determine the percent change in real GDP if the
unemployment rate goes from 8% to 4%.
[Solution]
Problem 2.4:
List the 3 major types of unemployment and the 4 major reasons for
unemployment.
[Solution]
Problem 2.5:
Find the unemployment rate given that a survey by the BLS reveals 30
people employed 10 people unemployed, and 40 people out of the labor
force.
[Solution]
