The following table shows employment data for Country Z's working-age population.
Cyclically unemployed: 4,000
Frictionally unemployed: 1,000
Structurally unemployed: 2,000
Employed: 63,000
Not in the labor force: 30,000
(a) Calculate the unemployment rate for Country Z. Show your work.
(b) Calculate the labor force participation rate for Country Z. Show your work.
(c) Is Country Z currently producing at its potential real output? Explain.
(d) Assuming constant opportunity costs, draw a correctly labeled graph of country Z's PPC, showing consumer goods on the horizontal axis and capital goods on the vertical axis. Label a point
W on the graph that reflects the current level of unemployment.
