In any economic slowdown, the unemployment rate rises, first and foremost, because employment growth slows or actually goes into negative territory.
September 3, 2020
Suppose PPP holds. Initially 85 yen () buys the same in Japan as 1 Canadian dollar (C$) buys in Canada. (a) What is the nominal exchange rate between…
September 3, 2020

That is why the jump in May’s unemployment rate – from 7.2 percent to 7.5 percent, the highest during this business cycle – caused dismay. Yet this may be missing the point. The number of people in the labor force in the month of May jumped by 330,000.” The higher unemployment rate was probably caused by

a) a fall in employment b) a massive destruction of jobs 8

c) an increase in the participation rate

d) an increase in the number of discouraged workers

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