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a) The current unemployment rate is 4.6% and the number of people in the labour force is 266,478.Use this information to find the following.

i. How many people are unemployed?

ii. If the working age population is 366,547, what is the labour force participation rate?

b) Suppose that the size of the labour force decreases by 20,000 people. What would happen to the unemployment rate? Assume that the number of people unemployed does not change. Explain your answer by referring to the relevant equation.

c) Levi lost his job in the factory he worked in as the factory lost its competitiveness in the domestic market over cheap imported products. Levi now cannot find a job that utilizes his skills. Is Levi frictionally unemployed, structurally unemployed or cyclically unemployed? Explain your answer.

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