# Assignment 6

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Zoe Johnson Econ 205 T/Th March 22, 2022 Assignment 6 1. You are given the following data: i. Total Unemployment= 13,000,000 ii. Adult Population= 260,000,000 iii. Labor Force= 150,000,000 iv. Total Population= 330,000,000 v. Total Cyclical Unemployment= 5,000,000 Use the information above to calculate the unemployment rate and the labor force participation rate. Show all work. Unemployment Rate= unemployed people/labor force *100 o 13,000,000/150,000,000= 0.086666667 *100= 8.66666667 Labor Force Participation Rate= Labor Force/Working age population *100 o 150,000,000/260,000,000= 0.57692308 *100= 57.6923077 2. Use the rule of 72 to answer each of the following questions. Show all work. (Question is worth 4 points) a. Approximately how long will it take for \$1000 to increase to \$2000 when invested at a 6% compounded annual interest rate. i. 72/6= 12 years b. Suppose US real GDP per capita is currently growing at a 1% annualized rate. If the level of real GDP per capita is currently \$55,000, in what year will real GDP per capita have doubled in size to \$110,000? i. 72/1= 72 years c. Suppose you inherited 125,000. IF you were able to invest this at a 9% annual rate, approximately how long would it take for this amount to increase in size to 1,000,000? i. 72/9= 8 yrs= 250,000 ii. 8 yrs + 8yrs= 500,000 iii. 16 yrs+8 yrs= 750,000 iv. 24+8 yrs= 1,000,000 v. Final Answer: 8+8+8+8= 32 yrs d. Suppose you inherited \$125,000, but the interest rate that it can be invested in is 3%. Approximately how long will it take for this amount to increase to \$1,000,000. i. 72/3= 24 years= 250,000 ii. 24 years+24 years= 500,000 iii. 24 yrs +24 yrs+24 yrs= 750,000 iv. 24 yrs+24 yrs+24yrs+24 yrs= 1,000,000 v. Final Answer: 24+24+24+24= 96 yrs
3. In what country do most scholars believe the Industrial Revolution began? a. Great Britain 4. Average labor productivity is essential to achieving long run improvements in real GDP per capita. How is it measured? a. GDP divided by the population of a country or area