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For part c, the answer states that the employment population ratio would remain the same. However, I am confused as to why that is because I would think if the college graduates cannot find work, they would be considered unemployed and would therefore decrease the employment-population ratio.
Chapter 28: P&A-5 (page: 636- Economists use labor-market d 3? ate how well an economy isusing its most valuable resource-Its peo e. Two closely watched statisticsare the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarious. In your opinion, which statistic is the more meaningful gauge of how wellthe economy is doing? a. An auto company goes bankrupt and lays off its workers, whoimmediately start looking for new jobs. b. After an unsuccessful search. some of the laid-off workers quit lookingfor new jobs. c. Numerous students graduate from college but cannot find work. d. Numerous students graduate from college and immediately begin newjobs. e. A stock market boom induces newly enriched 60-year-old workers totake early retirement. f. Advances in health care prolong the life of many retirees.
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