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Unemployment rate after the announcement

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Suppose that the labour force is currently 5 million and the unemployment rate is 10%. On August 1, government announces that it will create 45,000 new jobs to be filled over the next three months. Only people who were unemployed on August 1 will be hired. As a result, 110,000 people immediately apply for the jobs; half of these people had previously not been actively seeking work.

b. The unemployment rate after the announcement but before the jobs are filled will be %. Enter your responses rounded to one decimal place.

c. Once all the jobs are filled, the unemployment rate will be %.

Reference no: EM132191754

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