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Question: The following information is to be used for the calculation of the unemployment rate: Suppose there are two major groups, adults and teenagers, with adults divided into men and women. Teenagers account for 10% of the labor force. Women make up 35% of the adult labor force. Suppose also that the unemployment rates for these groups are as follows, teenagers, 19%; men, 7%; women, 6%. Calculate the aggregate unemployment rate. What if the share of teenagers in the labor force increases from 10 to 15%. How will this affect the aggregate unemployment rate?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93126400

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