Q BUSINESS CYCLES, UNEMPLOYMENT, AND INFLATION IN-CLASS WORKSHEET 1 This question explores the identification of individuals in terms of their labor force and employment status. You will be provided introductions to different individuals and asked to classify them in one of these groups. Task 1: Jenni is 27 years old. She currently splits her time between cleaning friends’ houses and working part-time at a local record store. Is Jenni in the labor force and/or employed? Task 2: Jack is 63 years old. He recently retired from his job as a university administrator. Is Jack in the labor force and/or employed? Task 3: Pedro is 46 years old. He recently lost his job as a police officer. He applied for a new job as a security consultant yesterday. Is Pedro in the labor force and/or employed? Task 4: Alyssa is 27 years old. She is a full-time graduate student at the University of Iowa and she applied for a part-time job at a local café last week. Is Alyssa in the labor force and/or employed? Task 5: Nick is 32 years old. He recently lost his job as an electrical engineer. He has been offered a new job, but he will not start that new job for 7 weeks. Is Nick in the labor force and/or employed? BUSINESS CYCLES, UNEMPLOYMENT, AND INFLATION IN-CLASS WORKSHEET 2 This question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four different countries and asked to identify the unemployment rate. Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the labor force and 65 are employed. What is the unemployment rate in Asartaland? Task 2: The population of Millsville is 130. Of these 130 individuals, 90 are in the labor force and 20 are unemployed. What is the unemployment rate in Millsville? Task 3: The population of the Republic of Butters is 165. Of these 165 individuals, 130 are in the labor force and 25 are unemployed. What is the unemployment rate in the Republic of Butters? Task 4: The population of Arctica is 30. Of these 30 individuals, 20 are in the labor force and 17 are employed. What is the unemployment rate in Arctica? BUSINESS CYCLES, UNEMPLOYMENT, AND INFLATION IN-CLASS WORKSHEET 3 This question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for two different countries and asked to identify the unemployment rate. Additionally, you will analyze the effect of the size of the labor force on the unemployment rate. Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the labor force and 65 are employed. What is the unemployment rate in Asartaland? Task 2: Suppose the number of employed individuals in Asataland remains constant at 65, but the labor force grows to 90. What would be the NEW unemployment rate? Task 3: When the labor force grows, but the number of employed individuals remains the same, does the unemployment rate rise or fall? Task 4: The population of the Republic of Butters is 165. Of these 165 individuals, 130 are in the labor force, and 25 are unemployed. What is the unemployment rate in the Republic of Butters? Task 5: Suppose the number of unemployed individuals in the Republic of Butters remains constant at 25, but the labor force grows to 140. What would be the NEW unemployment rate? Task 6: When the labor force grows, but the number of unemployed individuals remains the same, does the unemployment rate rise or fall?