Answer to Question #97463 in Macroeconomics for Breanne D Dalm

Question

What is the size of the labor force?
Natural rate of unemployment= 4%
potential Real GDP=$20T
Part-time for economic reasone= 8
Marginally-attached workers/ Discouraged workers=14
Population institutionalized= 40
Not in labor force= 60
Unemployed=30
total population=415
population under 16 year of age= 15

Answer 1

Given; natural rate of unemployment, UR =4%,

           Potential real GDP =$20T,

           Part-time for economic reason, PTe =8,

           Marginally attached/discouraged workers,MW =14,

           Population institutionalized =40,

           Not in labor force=60,

           Unemployed, UE =30,

           Total population =415

           Population under 16 years of age =15

           Employed, E=415-15-60-40-14= 286

Therefore, the size of labor force LF is given by;

           LF=E +UE

           LF= 286+30

           LF= 316.

$LF=E+EU$