Aim for FiveMacroeconomics

Short free-response question

Counting the unemployed

  • Unit 2
  • 5 points
  • About 12 minutes

You can use a calculator on this question, just like on exam day.

A shorter question on one or two models, often with data in a table. You might calculate something like an unemployment rate, real GDP or the spending change needed to close a gap, draw a labeled graph (described in words on this site), and explain an effect. On the exam: Questions 2 and 3 of 3 in Section II; each is worth a quarter of the section score, with about 12 minutes suggested for each. A four-function calculator is allowed.

The question and its sources

The table shows labor market data for the country of Quillon.

Table 1. Labor market data for Quillon

CategoryNumber of people
Adult population (age 16 and older, not in an institution or the military)40,000,000
Employed (full-time or part-time)23,500,000
Not working and actively looking for work1,500,000
Not working and not looking for work15,000,000

Source: Hypothetical data

Suggested time: 12 minutes

Your answers are saved in this browser as you type.

Something wrong with this question?

What's wrong?

Please don't include personal details.

Part (a)

1 point

Calculate the size of Quillon's labor force. Show your work.

0 / 2,500 characters

Part (b)

1 point

Calculate Quillon's unemployment rate. Show your work.

0 / 2,500 characters

Part (c)

1 point

Calculate Quillon's labor force participation rate. Show your work.

0 / 2,500 characters

Part (d)

1 point

Suppose 300,000 of the people who are actively looking for work become discouraged and stop looking. All other numbers stay the same. Will Quillon's unemployment rate increase, decrease, or remain the same? Explain.

0 / 2,500 characters

Part (e)

1 point

A bank in Quillon replaces its tellers with automated machines. The former tellers are looking for work, but the available jobs require computer programming skills they do not have. Identify the type of unemployment these workers are experiencing.

0 / 2,500 characters

Checking scoring…

Scoring it yourself shows you the rubric, examples and a model answer. Try writing your answer first.