Question #286692

1) Calculate the natural level of employment if the labor force is 150 million and the 

natural rate of unemployment is 5%.


1
Expert's answer
2022-01-17T12:29:47-0500

Natural rate of employment=EmployedLaborForce=\frac {Employed}{Labor Force}


Naturalrateofunemployment=UnemployedLaborForceNatural rate of unemployment=\frac {Unemployed}{Labor Force} ​


5=U150m×1005 =\frac {U}{150m}\times100 ​


Where; U= Unemployed

100U=5×150m100U=5\times150m

U=(5×150m)100=7.5mU=\frac{(5\times 150m)}{100}=7.5m

Employed = Labor force-Unemployed= 150-7.5= 142.5m

Naturalrateofemployment=142.5m150m×100=95Natural rate of employment=\frac {142.5m}{150m}\times 100= 95%


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