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In January 2015, the Zanzi economy had an unemployment rate of 5.9 percent. In August 2016, the unemployment rate was 8.7 percent.
a. Predict what happened to unemployment between January 2015 and August 2016, if the labour force was constant.
b. In part a, what happened to employment? Explain.
c. Predict what happened to the labour force between January 2015 and August 2016, if unemployment was constant.
d. In part c, what happened to labour force participation rate? Explain.
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