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# Labor Force, Inflation Rate

The size of the labor force in a community is 500, and 400 of these folks are gainfully employed. In this community, 100 people over the age of 16 do not have a job, and are not looking for work. In addition, 200 people in the community are under the age of 16. The unemployment rate is...?

Suppose nominal GDP in 2000 was \$8 trillion and in 2001 it was \$10 trillion. The general price index in 2000 was 100 and in 2001 it was 105. Between 2000 and 2001 real GDP rose by what percent?

The consumer price index was 140.3 in 1992 and 144.5 in 1993. Therefore, the rate of inflation in 1993 was about...?

#### Solution Preview

a. The labor force are the people available for work. That is it includes the employed and the unemployed who are willing to work. The labor force is 500 and 400 of these people are gainfully employed. The unemployment rate are the 100 people who are willing to work but are not working divided by the total amount of people in the labour force and this whole number is ...

#### Solution Summary

The solution answers these 3 questions on unemployment rate, rise in real GDP and rate of inflation in 282 words with numbers to back it up where necessary.

\$2.19