The table below shows the percentage of the labour force accounted for by males and females over a two-decade period.Assume that real GDP is equal to potential in each of the given years.
% of Labour Force
TABLE 30-4
-Refer to Table 30-4.Suppose that for each year listed the unemployment rate among males is 5% while it is 7% among females.By how much does this economy's NAIRU change between 1960 and 1975?
A) it decreases by 1 percentage point
B) it remains the same
C) it increases by 0.5 percentage point
D) it increases by 0.3 percentage point
E) it increases by 0.2 percentage point
Correct Answer:
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