Answer to Question #4767 in Macroeconomics for Natalie

Question

Consider the following setup for a hypothetical economy:

People Employed = 1,573,825
Labor Force = 1,984,327
Total Population = 2,341,192
Natural Rate of Unemployment = 5.65%
Discouraged Workers = 238,649
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How many people are either structurally or frictionally unemployed?

Note: Enter the actual number of people.

Answer 1

Total unemployment = (1984327-1573825)/2341192 = 0.1753 = 17.53%, %discouraged =
238649/2341192 = 10.19%,
%structurally and frictionally unemployed =
17.53%-10.19%-5.65% = 1.69%, structurally and frictionally unemployed = 1.69%
2341192 = 16154 people.