987,156 Currently Working 9845 (ages 13-14) looking for work 23,000 volunteer workers 12,000 (ages 15) looking for work 56 family workers who worked 15 hrs a week 6543 Discouraged Workers 45,600 Part-Time workers 234 Self-Employed 67,432 (ages 23-25) looking for work 67,890 laid off receptionists looking for work 544,321 (ages 16-20) looking for work Current population is 6,000,000 5000 armed forces 5654 Temp Workers 543 recent university graduates that are going back to graduate school 3500 institutionalized
987,156 Currently Working 9845 (ages 13-14) looking for work 23,000 volunteer workers 12,000 (ages 15) looking for work 56 family workers who worked 15 hrs a week 6543 Discouraged Workers 45,600 Part-Time workers 234 Self-Employed 67,432 (ages 23-25) looking for work 67,890 laid off receptionists looking for work 544,321 (ages 16-20) looking for work Current population is 6,000,000 5000 armed forces 5654 Temp Workers 543 recent university graduates that are going back to graduate school 3500 institutionalized
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter12: The American Labor Force
Section: Chapter Questions
Problem 1AA
Related questions
Question
![987,156 Currently Working
9845 (ages 13-14) looking for work
23,000 volunteer workers
12,000 (ages 15) looking for
work
45,600 Part-Time workers
56 family workers who worked
15 hrs a week
6543 Discouraged Workers
67,890 laid off receptionists
looking for work
234 Self-Employed
67,432 (ages 23-25) looking for work
544,321 (ages 16-20) looking for work Current population is
6,000,000
5654 Temp Workers
543 recent university graduates that
are going back to graduate school
5000 armed forces
3500 institutionalized
3
(c) Suppose that 20,000 of the employed switches to jobs in the underground
economy. When interviewed by STATIN, 50% of these switchers report that they
are not working and not seeking work, while the other 50% report that they are
not working but seeking work. Explain what happens to the official
unemployment rate and the "true" unemployment rate.
(d) Illustrate and carefully explain the impact of an increase in the income tax rate
from 25 percent to 35 percent on the demand for labour, supply of labour,
equilibrium wage and level of employment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdcaf12d-ccb8-448e-8eae-501e22282065%2F904e2699-399b-48f7-9fa7-b542f2785e80%2Fb12uxzb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:987,156 Currently Working
9845 (ages 13-14) looking for work
23,000 volunteer workers
12,000 (ages 15) looking for
work
45,600 Part-Time workers
56 family workers who worked
15 hrs a week
6543 Discouraged Workers
67,890 laid off receptionists
looking for work
234 Self-Employed
67,432 (ages 23-25) looking for work
544,321 (ages 16-20) looking for work Current population is
6,000,000
5654 Temp Workers
543 recent university graduates that
are going back to graduate school
5000 armed forces
3500 institutionalized
3
(c) Suppose that 20,000 of the employed switches to jobs in the underground
economy. When interviewed by STATIN, 50% of these switchers report that they
are not working and not seeking work, while the other 50% report that they are
not working but seeking work. Explain what happens to the official
unemployment rate and the "true" unemployment rate.
(d) Illustrate and carefully explain the impact of an increase in the income tax rate
from 25 percent to 35 percent on the demand for labour, supply of labour,
equilibrium wage and level of employment.
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