AP Macroeconomics 2.3: Unemployment Measures
Calculate unemployment and labor force participation rates, then explain how employment changes and discouraged workers affect each indicator.
- Syllabus
- Effective Fall 2025
- Course
- AP Macroeconomics
MEA-1.C—a. Define the labor force, the unemployment rate, and the labor force participation rate. b. Explain how changes in employment and… question 1
[Maximum number: 3]
Assume that in the country of Zeta, the civilian noninstitutional population aged 16 and over is 1,000,000. The labor force participation rate is 70%, the unemployment rate is 9%, and the natural rate of unemployment is 5\%.
Question (a)
(a)
Calculate the number of people in Zeta that are unemployed. Show your work.
[ 1 ]
Calculate the number of people that are unemployed as 63,000 and show your work.
Unemployed = Unemployment Rate × Labor Force Participation Rate
× Adult Population =9%×70%×1,000,000=63,000
1 point
Question (b)
(b)
If some individuals who are counted as unemployed in Zeta looking for work, what will happen to each of the following?
[ 2 ]
Question (i)
(i)
The labor force participation rate. Explain.
[ 1 ]
(i) State that the labor force participation rate will decrease and explain that the labor force 1 point will decrease because the workers who stopped looking for employment are no longer considered to be unemployed.
Question (ii)
(ii)
The unemployment rate
Begin your response to this question at the top of a new page in the separate Free Response booklet and fill in the appropriate circle at the top of each page to indicate the question number.
[ 1 ]
State that the unemployment rate will decrease. 1 point
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