Reference no: EM132317755

a) Explain what would likely happen to the unemployment rate if the definition of being employed part-time was changed to require someone to have worked at least 10 hours per week (rather than only 1 hour as currently defined).

b) Explain what the implications of moving towards a 'gig economy', where fewer people work full-time jobs, will have on the unemployment rate and on the output of the economy

c) Based on each of the following descriptions of an individual, answer whether they would be considered 'unemployed' or 'not unemployed'. If they are 'unemployed', suggest whether you think it is frictional, structural, seasonal or cyclical unemployment. You must provide reasons for you answers. The correct answer with no explanation will not receive any marks.

i. A 25-year-old has quit his job to be the primary caregiver of his elderly mother who has terminal cancer. He plans to return to work when she dies.

ii. A 65-year-old accountant has quit her job because she was frustrated about not being promoted and has since applied for two other positions.

iii. A full-time student no longer received any hours at her local retail store due to lack of demand for all consumption goods. She has decided to focus on her studies for the next year and not look for other work.