(Solved): Question 1 (25 marks total) Answer the following questions: In 2022, Borderland has an adult populat ...

Question 1 (25 marks total) Answer the following questions: In 2022, Borderland has an adult population of 15,700,000, a labor force participation rate (LFPR) of 65.7%. The number of employed persons is 9,630,000. Find the 2022 labor force, number of unemployed persons and the unemployment rate. Show your steps. (6 marks) a. b. In 2023, it is known that unemployment rate is 12%. A war that started in 2023 resulted in an emigration of adults by 1,500,000. If the LFPR has remained unchanged, what number of people are now employed and how many are now jobless? Show your steps. (6 marks) Because of the dire condition of the war, the Borderland government estimated that 5% of the employed person in 2023 are now working at less than 8 hours a day which is the benchmark for full-time employment. How would this information affect the unemployment rate of 2023? Explain. C. d. e. f. (3 marks) Government officials also estimated that the natural rate of unemployment of Borderland in 2022 was 6%. If the natural ate is expected to be constant, what is the amount of cyclical unemployment in 2021? (2 marks) If on the other hand, the number of previously structurally unemployed persons has fallen by 15% due to emigration, and the frictional unemployment is unchanged, will the 2023 cyclical unemployment be bigger than, same as, or smaller than your answer in part d.? Explain. (4 marks) Continuing from b., how will the drafting of 120,000 employed persons into the military change the unemployment rate and the LFPR (increase or decrease)? Compare your answer to the case when 120,000 previously unemployed persons become discouraged and stopped looking for jobs? [Hint: Employment refers to civilian employment only] (4 marks)