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Question: Consider the following labour market data and compute the followings (where relevant, show it to two decimal points).
Adult population - 100
Not in labour force - 20
Unemployed - 15
Employed - 65
i) Calculate the labour force.
ii) Calculate the percentage of people not in the labour force.
iii) Calculate the rate of unemployment.
iv) Calculate the labour force participation rate.
Why is a change in the age structure of the population, increasing the proportions of young or old workers in the labour force, likely to change the natural rate of unemployment?
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