Part Five

Overview of
Macroeconomics

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1. Birth of "Macroeconomics"
Free market economy system is based on the forces of supply and
demand with no government interference in the economic life.
Free market economy system sees the economy as some
individual units, and each unit controlled by demand and supply
forces. If there is an economic problem in one of the units inside
the economy, the mechanism of demand and supply is able to
correct it. For instance, if there is a surplus of labor-force in the
labor market, there will be a high unemployment rate in labor
market. This sends a message that the level of wages in the labor
market is too high to clear the market; hence, the level of wages
starts to decline until the high unemployment rate decrease to its
normal rate.
Free market economy system prevailed in the United State of
America and most of European countries till the incidence of
severe worldwide economic downturn in the 1930s, which known
as the “Great Depression” or the “Great Slump”. This economic
depression lasted until the middle of 1940s, and was considered
the longest, deepest, and most widespread depression of the 20 th
century.
The mechanism of demand and supply field to correct the
consequences of the Great Depression, where economic condition
has worsened and unemployment rates climbed to unprecedented
levels.
The bad economic situation required a new economic system to
bring it back to the right track. This economic system deals with
the economy as a one unit rather than individual units, and
government plays a crucial role in combating periodic economic
crises and stimulating long-term economic growth.

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The new economic system (Macroeconomics) was born at the
hands of John Maynard Keynes, as he tried to understand the
economic mechanism that produced the Great Depression.
The development of Macroeconomics has been one of the major
breakthroughs of 20th century economics, leading to a much better
understanding of real economic life, as it deals with the major
economic issues and problems of the day.
Macroeconomics mainly concerns with two central themes: 1st
short-term fluctuations in output, employment, and price level that
we call "business-cycle"; 2nd long-term trends in output and living
standards known as "economic growth".
2. Macroeconomic Main Goals
Macroeconomics examines the sources of high unemployment and
inflation rates and low (or may be negative) economic growth,
provides possible diagnoses, and finally suggests possible
remedies for such situations.
Macroeconomic main goal remains evaluating the performance of
the economy as a whole, and to identify strengths and weaknesses
in the economic performance. In this context, some economic
indicators may be helpful. On the top of these indicators:
Economic growth rate, unemployment rate, inflation rate and
exchange rate.
A. Economic Growth Rate:
Where the ultimate objective of economic activity is to provide
the goods and services that the population desires, economic
growth is at the first priority for any economy.
Economic growth is the growth of total output (production) of
goods and services in the economy over time.

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Gross Domestic Product (GDP) is the term used to express the
total production of goods and services produced inside the
economy. Then economic growth is the change in a country’s
GDP from year to year.
Notice that:
In spite the fact that economic growth refers only to the quantity
produced of goods and services; however, a country’s GDP is
measured in terms of money (value). This is because there are a
variety of goods and services that are produced within the
economy, and these goods and services have different
measurements. So, it is impossible to add these different goods
and services together to get the country’s GDP unless the quantity
produced of these goods and services are converted to values.
GDP is defined as the market value of all goods and services
produced within an economy during a certain period of time.
Economic growth can be either positive or negative. If the
country’s GDP increased from one year to another, the economic
growth will be positive; however, if the country’s GDP decreased
from one year to another, the economic growth will be negative.
Negative growth can be referred to by saying that the economy is
shrinking, and it may be associated with economic recession
because of wars, revolutions or financial crisis.
 Gross Domestic Product (GDP) versus Gross National
Product (GNP)
The difference between GDP and GNP comes down to two
factors: ownership of factors of production and location of
production.
GDP measures the value of total output based on location of
production. If economic output occurs within the borders of the
country, then it is included in the GDP of this country.
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GNP, on the other hand, measures the value of total output based
on ownership of factors of production. If the resources that
produce the economic output are owned by a country's citizens
(nationality holders), they are included in the GNP of this country.

Gross Domestic Product Gross National Product

(GDP)
GDP is the market value of all
final goods and services
produced within the borders of
a country during a year.
(GNP)
GNP is the market value of all
final goods and services
produced by domestic factors
of production during a year.

Example: Honda owns a plant in Egypt. The plant's output is

included in the GDP of Egypt, because the plant is located in
Egypt. However, because the plant is owned by Japan, then the
plant's output is not be included in the GNP of Egypt, while it will
be included in the GNP of Japan.
 How to calculate Economic Growth Rate (EGR)
Economic growth rate is often measured as the rate of change in
real GDP.
EGR of the year in question= GDPof the year in question - GDPof the previous year
X 100
GDP of the previous year

Example: Real GDP of Egypt was L.E797 billion in 2008, and it

was L.E838 billion in 2009.
What is the economic growth rate of Egypt in 2009?
EGR 2009= GDP2009 - GDP 2008 = 838 - 797
GDP2008 X 100 797 X 100
EGR 2009= 5.1%
This indicates that: the production of goods and services in the
Egyptian economy increased by 5.1% from year 2008 to year
2009.
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 Nominal, Real and Potential GDP:
Nominal GDP: It is the market value of all final goods and
services produced within a country during a year measured at
actual market prices (current market prices).
Example: Suppose that an economy produces just one good
“Apples”. Apples production in 2009 was 1000KG and the unit
price was L.E4 per KG, while Apples production in 2010 was
800KG and unit price was L.E6 per KG.
Calculate economic growth rate using nominal GDP.
Quantity Nominal
Year Unit Price
Produced GDP
2009 1000 4 4000
2010 800 6 4800

To calculate nominal GDP for each year, units produced of apples

in a year have been multiplied by the unit price of the same year.
4800 - 4000
EGR2010 = ×100 = 20%
4000
Notice that:
In spite the production of apples has been decreased from year
2009 (1000 kg) to year 2010 (800 kg); however, economic growth
rate in year 2010 is 20%.
It is obvious that calculating economic growth rate by using
nominal GDP will result in misguided economic growth rates.
The question is: why calculating economic growth rate by using
nominal GDP will result in misguided economic growth rates?
The answer is changes in prices spoil the process of calculating
economic growth rate.
While economic growth refers only to the quantity of goods and
services produced by the economy, as it concerns with measuring
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the change in quantity produced of goods and services not their
prices, then making their prices constant will not affect the
process of calculating economic growth rate.
Real GDP: The market value of all final goods and services
produced within a country during a year measured at constant
market prices (base year prices).
Example: Return back to the previous example, and calculate the
economic growth rate in year 2010 by using 2009 market prices as
a reference (base year prices).
Using 2009 market prices as a reference means that we will use
2009 market prices in calculating the value of total production of
every year.
Quantity
Year Unit Price Real GDP
Produced
2009 1000 4 4000
2010 800 4 3200

3200 - 4000
EGR2010= ×100 =-20%
4000
Notice that:
Calculating economic growth rate using real GDP reflects actual
changes in quantity produced (production in units).
Potential GDP: It is the maximum amount of goods and services
that can be produced within an economy during a year, given its
available resources and level of technology.
When an economy reaches its potential GDP, this means this
economy is an efficient one, as it uses all its available resources
by an efficient way, and there are no idle resources in the
economy.
GDP Gap: It is a difference between potential and actual GDP.

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B. Unemployment Rate:
Of all the macroeconomic indicators, employment and
unemployment are most directly felt by individuals. People want
to be able to get high-paying jobs without searching or waiting too
long.
To describe someone as unemployed, three conditions must be
available:
1st he must be in the working age (over sixteen and below sixty).
2nd he must be available for work (he must be ready, physically
and mentally, to get a job).
3rd he must be actively seeking work (he is interested in getting a
job).
If all the three conditions are fulfilled, and this person did not
manage to get a job; then he can be described as unemployed.
If the economy is working efficiently, unemployment will be at its
normal or natural rate (5%). However, during periods of recession,
unemployment rates climb to very high rates, where actual GDP
of the economy is lower than its potential GDP.
Notice that:
If the economy is growing slowly relative to its potential, it fails
to generate enough new jobs for its growing labor force, as the
number of job-seekers exceeds the number of available vacancies.
Unemployment is a social and economic problem. It is an
economic problem as it means existence of an idle factor of
production (labor); accordingly, the economy cannot reach its
potential GDP. On the other hand, it is a social problem because
there is a direct relationship between unemployment rate and the
rate of crime inside the economy.
The best known measure of unemployment is the unemployment
rate.
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Unemployment Rate: It is the percentage of the labor force that
is unemployed.
Unemployment rate = Unemployed People
×100
Total Labor Force
The labor force of a country consists of everyone in working age
(over 16 and below 60) and available (able) for work, even he is
actively employed or seeking employment. So the labor force is
the sum of all employed and unemployed adults.
 Types of Unemployment:
• Frictional unemployment: It is unemployment that is due to
normal turnover in the labor market. It includes people who are
temporarily between jobs because they are moving or changing
occupations.
• Structural unemployment: This type of unemployment
affects certain industries and occupations. It refers to workers
who have lost their jobs because of technological changes, as
they have been displaced by automation. It also occurs because
there is a mismatch between the skills of the unemployed
workers and the skills needed for the available jobs.
• Cyclical unemployment: It occurs when there is not enough
aggregate demand in the economy to provide jobs for everyone
who wants and able to work. In this situation, the demand for
most goods and services falls, less production is needed and
consequently fewer workers are needed; and then mass
unemployment results. In other word, cyclical unemployment
is the portion of unemployment that is attributable to a decline
in the economy's total production, and it rises during recessions
and falls as prosperity is restored.

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• Seasonal unemployment: It arises from seasonal variations in
some economic sectors and activities, such as: tourism and
agriculture.
Notice that:
When economists say that the economy is at full employment,
they mean that there is no cyclical unemployment. However,
frictional, structural and seasonal unemployment can and do exist
when the economy is fully employed.
The normal or natural unemployment rate at full employment is
about 5% to 6%.
 Social Security System and Unemployment:
One major reason why developed countries' unemployed workers
no longer experience the complete loss of income during periods
of recessions and financial crisis is the social security system they
have. The two main schemes in this system that were designed to
contain unemployment effects are unemployment insurance and
unemployment benefits.
▪ Unemployment insurance system:
It is a government program that replaces some of the wages lost
by eligible workers who lose their jobs.
The unemployment insurance system is a cushion which is built to
prevent recessions and depression. By giving money to those who
become unemployed, the system helps prop up aggregate demand
during recessions and depressions.
▪ Unemployment Benefits:
Unemployment Benefits are payments made by the state or other
authorized bodies to unemployed people.
Unemployment Benefits spread the costs of unemployment over
the entire population through taxes programs. But it doesn't

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eliminate the basic economic cost (the missing part of production
because of unemployed labor-force).
This system simply spreads the costs of unemployment among
many people instead of letting all of the costs fall on the shoulders
of a few unfortunate souls.

C. Inflation Rate:
The third macroeconomic objective is to maintain stable prices.
During inflationary periods, people pay higher prices for the same
quantities of goods and services they used to buy before, so more
and more incomes are needed just to maintain the same standard
of living.
Inflation is defined as a continuous increase in the general price
level in an economy.
When the general price level rises, each unit of currency buys
fewer goods and services; consequently, inflation is also known as
erosion of the purchasing power of money.
The purchasing power of a given sum of money is the amount of
goods and services that it can buy.
 Types of Inflation:
• Creeping Inflation: It is inflation with small and gradual
increase in prices.
• Hyper Inflation: It is inflation with large and accelerating
increase in prices.
 Sources of Inflation:
• Demand-Pull Inflation: It arises when aggregate demand in
an economy exceeds aggregate supply. This is commonly
described as "too much money chasing too few goods".
• Cost-Push Inflation: It occurs as a result of substantial
increase in the cost of production due to an increase in the
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 prices of factors of production such as wages, rents and interest
and/or the prices of energy. In addition, the price of foreign
exchange plays an important role in spurring on inflation. In
many instances, hyperinflation is triggered by domestic
currency collapse. The increased price of foreign inputs to
domestic production provides a stimulus to cost-push
inflationary pressures.
 Money versus Real Income:
• Money Income: Income measured only in terms of money.
• Real Income: It is the amount of goods and services that the
money income can buy. Real income takes into account
changes in the purchasing power of money due to inflation or
deflation, as it measures income in terms of the amount of
goods and services that it can obtain.
 Nominal versus Real Interest Rates:
• Nominal Interest Rate: It refers to the rate of interest before
adjustment for inflation.
• Real Interest Rate: It is approximately the nominal interest
rate minus the inflation rate. It is the rate of interest an investor
expects to receive after subtracting inflation. If inflation rate is
greater than nominal interest rate, then real interest rate will be
a negative rate.
 Measuring Inflation:
We can measure inflation by two main ways:
• Consumer Price Index (CPI): It is the most common price
measure. The CPI measures the cost of a basket of goods and
services that consumers typically use through years, and then,
this cost is compared to what it costs in a base period or
previous period.

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To compute the price index, the cost of the market basket in any
period is divided by the cost of the market basket in the base
period, and the result is multiplied by 100.

CPI of the year in question – CPI of the previous year

Inflation Rate = ×100
CPI of the previous year

Example: Suppose a representative market basket of weekly

expenditures of teenagers is three hamburgers, eight colas, and
one gallon of gasoline. With the prices of year 2008 shown in the
table below, the cost of the market basket is $5.00
(3×0.75+8×0.25+1×0.75). In year 2009 two prices have risen and
one has declined. Yet one can say that on the whole the price level
has risen because the cost of the market basket has risen to $5.50
(3×0.70+8×0.30+1×1). This is an increase of 10% ([5.5-
5]/5×100). From year 2009 to year 2010 prices change again, and
the cost of the market basket goes up by another $.50 and stays at
$6 (3×0.90+8×0.30+1×0.9). In year 2010 the price level is 20%
higher than it was in year 2008 ([6-5]/5×100), and 9.1% higher
than in year 2009 ([6- 5.5]/5.5×100).
Unit Price Unit Price Unit Price
Items Amount
2008 2009 2010
Hamburgers 3 0.75 0.70 0.90
Colas 8 0.25 0.30 0.30
Gasoline 1 0.75 1 0.90
Cost of the
5 5.5 6
Market Basket
Consume Price Index 100 110 120
5 5.5 6
How to Calculate CPI 1 0 0= 1 0 0 1 0 0= 1 1 0 1 0 0= 1 2 0
5 5 5

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The price index tries to give in one number a general picture of
what is happening to a great many numbers. As the example
shows, some prices may actually be declining while the price
index is rising. These prices were not ignored by the price index;
rather their contribution was less important to the overall result
than the contribution of items whose prices rose.
1 0 0− 1 0 0
Inflation rate2008= 1 0 0= 0% base year 2008
100
1 1 0− 1 0 0
Inflation rate2009= 1 0 0= 1 0% base year 2008
100
1 2 0− 1 0 0
Inflation rate2010= 1 0 0= 2 0% base year 2008
100
1 2 0− 1 1 0
Inflation rate2010= 1 0 0= 9.1% base year 2009
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GDP Deflator: In economics, the GDP deflator (implicit price
deflator for GDP) is a measure of the level of prices of all final
goods and services in an economy. Implicit GDP deflator is the
most comprehensive index of the price level because it covers all
goods and services that are produced by the entire economy.
Nominal
GDP Deflator = GDP
100
RealGDP
If implicit deflator is 100%, this means that there is no changes in
the price level relative to the prices of the base year, any
percentage increase over 100% means that the price level
increased by this percentage relative to the price level of the base
year, any percentage decrease below 100% means that the price
level decreased by this percentage relative to the price level of the
base year.
Example: Suppose that nominal GDP for the year 2010 is 4800
and real GDP for the same year is 3200 (measured at year 2009
prices).
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Calculate GDP deflator then interpret the result you got.
4800
GDP Deflator =  100 = 150%
3200
This implies that the price level has increased by 50% from year
2009 (the base year) to year 2010.
Note that: Dividing the nominal GDP by the GDP deflator and
multiplying it by 100 would then give the figure for real GDP,
hence deflating the nominal GDP into a real measure.
 The Good and the Bad with Inflation
In spite inflation has a number of harmful repercussions,
as it decreases real incomes and redistributes incomes in
favor of the rich; however, inflation may stimulate
economic growth for the following reasons:
- Business people usually benefit from inflation, since
product prices tend to rise faster than resource prices. This
increases the business profit and may encourage
businesses to invest more.
- Inflation reduces the real interest rate and real debt
burden for expanding business.
- Because inflation redistributes incomes in favor of the
rich who has relatively higher marginal propensity to
save, the pool of saving tends to increase in the economy.
This increases the chances of high rates of productive
capital formation.
Researches proved that the relationship between inflation
and economic growth is negative in most developing
countries.
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D. Exchange Rate:
All nations participate in the world economy and are linked
together through trade and finance. So the fourth goal of
macroeconomics is fruitful international trade in goods, services
and capital where exports balance imports and the nation has a
stable exchange rate against other foreign currencies.
Net Exports is the numerical difference between the value of
exports and the value of imports. When exports’ value exceeds
imports’ value, the difference is a surplus, while a negative net
export is a deficit, where imports’ value is greater than exports’
value.
These surpluses and deficits of net exports have considerable
effects on countries local currencies exchange rates.
Exchange rate: It represents the price of a nation's currency in
terms of other nations’ currencies.
• Determinants of the Exchange Rate:
The exchange rate is the value of a unit of its local currency (For
Egypt, the value of the Egyptian pound in terms of other foreign
currencies). If foreigners want to buy more goods, services and
financial assets from a certain country, they have to buy more of
this country’s local currencies. Therefore, when the rest of the
world’s demand for you country’s goods, services and financial
assets increases, the demand for your local currency increases.
The result is that the price of your local currency (its exchange
rate) increases.
Conversely, when your country’s demand for other foreign
countries’ goods, services and financial assets increases, your
country’s citizens have to sell considerable amounts of the local
currency. The supply of your local currency increases, and its
price (exchange rate) falls.
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By combining these forces of demand and supply, the value of the
currency in question is determined by the exchange rate that
makes the demand for this currency equal its supply. See figure
(1-1)
Figure (1-1)
Flexible Exchange Rate
Currency’ s Price (Exchange Rate)

Supply

E
PE

Demand

QE
Quantity of Currency

Figure (1-1) shows how the exchange rate is determined in a

country has flexible exchange rates system, with which the
government lets the local currency’s exchange rate be set by the
free market forces of demand and supply.
Assume that the country in question is Egypt and the foreign
country is the United States of America; then notice the following
points.
1. The demand curve is the demand by Americans for the
Egyptian pounds. Americans demand Egyptian pounds to buy
Egyptian goods, services and capital (physical and financial
assets).

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2. The demand curve has a negative slope: As the Egyptian pound
becomes cheaper, Americans demand more Egyptian pounds.
When the price of the Egyptian pound falls (when it takes
fewer dollars to buy a pound), the Egyptian pound has
depreciated. As a result, the dollar price of the Egyptian
goods, services and capital becomes cheaper.
3. The supply curve is the supply by the Egyptians of pounds in
exchange for American dollars, so they can buy American
goods, services and capital.
4. The supply curve has a positive slope. When the value of the
Egyptian pound goes up (one Egyptian pound trades for more
dollars), the Egyptian pound has appreciated. As the value of
the Egyptian pound rises, Egyptians will buy more American
products and so supply more pounds in exchange for dollars.
5. In equilibrium, the demand and supply of the Egyptian pound
are equal. At this point, the equilibrium exchange rate has
been reached.
Example:
Suppose that, at equilibrium level, one USA dollar worth 6
Egyptian pounds, then one Egyptian pound worth 0.16 dollar
($1/L.E6). At this exchange rate, the amount of Egyptian pounds
demanded and supplies is L.E5000000. At this situation, a $15000
Chevrolet costs L.E90000 ($15000 × 6). If the demand on the
Egyptian goods, services and capital decreased, this will shift the
demand for the Egyptian pound to the left and the Egyptian pound
will be depreciated. Now, one dollar is worth L.E7 (one Egyptian
pound is worth 0.14 dollar). At the new situation, the $15000
Chevrolet costs L.E105000 ($15000 × 7). See figure (1-2).

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 Figure (1-2)
The price of the Egyptian pound in term of USA dollar
Egyptian Pound Exchange Rate

Supply of Egyptian Pound

E1
$0.16
E2
$0.14

Demand for Egyptian Pound

D2
3 5
Quantity of Egyptian Pounds (millions)

Finally, maintaining price level stability and stabilization of the

exchange rate remained more or less the primary objectives of all
governments’ policies. These objectives were seen as essential for
sustaining appropriate levels of investment and promoting
economic efficiency. In addition depreciation of local currency is
considered the main source of inflation in most developing
countries.
• Runs on Currencies and Capital Flight:
A run on a currency occurs when many people try to sell the
currency, causing its exchange rate to fall dramatically. This
happens when foreign investors became less confident in their
investment in a certain country due to many factors such as:
- Political instability.
- Imposition of exchange controls by the government which
prevents the foreign investors from getting the return on their
investments out of the country.
- Uncertainty about the future economic growth of the country.
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Whatever the case, foreign investors suddenly try to take their
investments out of the country. This is called “Capital Flight”.
To see what would happen, let us suppose this country is Egypt.
According to political instability in Egypt, investors would sell
Egyptian bonds and stocks, causing the bond and stock markets in
Egypt to crash. When they sell these investments (securities), they
get Egyptian pounds. Next, they try to sell these pounds heavily,
which decreases the value of the Egyptian pound. Panic might set
in as other foreign investors, seeing the value of their Egyptian
investments fall, begin selling. A run on the Egyptian pound
starts. In this case, Egypt might try to borrow money from other
nations (including the International Monetary Fund) to pay off
foreign investors and avoid the panic.
If this tactic hasn’t worked, and the run on the Egyptian pound
continues, Egypt will find itself for a period of time without
foreign investors to finance its capital spending. Now, the only
way available to finance these capital spending is through the
domestic savings. To get the Egyptian savers to finance domestic
investments, the real interest rate will have to be higher. This is
the same thing as saying that bonds and stocks will sell for a lower
price. As a result of the higher interest rates, investment spending
falls and the economy often goes into a recession.
On the other hand, to make the Egyptian pound more valuable, the
Egyptian government could run a budget public surplus by
spending less and/or by raising taxes. Unfortunately, these actions
reduce aggregate demand, making the recession period worse!
Such actions may eventually restore the confidence of the world in
its economy, but they come with a terrible cost.

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 Review Questions
Part One: Essay Questions
(1) If actual GDP of a country grows faster than potential GDP,
what will happen to the unemployment rate in this country?
Explain?
(2) "Unemployment is no longer a social problem for most
developed countries, while it represents a huge social problem for
most developing countries". Comment on this.
Part Two: True or False with a Comment
(1) Real GDP is total value of goods and services produced by an
economy in a year measured at current prices. ( )
(2) Actual GDP is generally lower than potential GDP during
periods of high unemployment. ( )
(3) The CPI measures the price level by considering the prices of a
complete and comprehensive list of goods and services produced
by an economy. ( )
(4) The unemployment rate is the percentage of a nation's
population that is not employed. ( )
(5) The nominal interest rate on a saving deposit is 18%. If
inflation rate is 20%, then the real interest rate on this saving
deposit is 2%. ( )
(6) Frictional unemployment refers to workers who have lost their
jobs because of the industrial revolution. ( )

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Part Three: Practical Problems
(1) Country “X” produces just three products: apples, T-shirts, and
bicycles. The unit price and production of each product, for three
years, are listed in the table below.
Year 1 Year 2 Year 3
Products
Price Quantity Price Quantity Price Quantity
apples $1 50 $3 60 $4 70
T-shirts $6 100 $8 140 $7 160
Bicycles $80 90 $100 100 $90 110
a. Calculate nominal GDP for each year.
b. Calculate real GDP for each year. (Use year #1 as a base year)
c. Calculate GDP deflator for each year.
d. Determine the rate of inflation from:
1. year (1) to year (2): …………………………………………
2. year (2) to year (3): …………………………………………
3. year (1) to year (3): …………………………………………
e. Calculate the economic growth rate from:
1. year (1) to year (2): …………………………………………
2. year (2) to year (3): …………………………………………
3. year (1) to year (3): …………………………………………

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(2) Suppose a representative market basket of weekly
expenditures of families is 10kg of beef, 15kg of chickens, and 3
boxes of cigarettes. The unit prices of these items from year 2008
to 2010 are shown in the following table.
Unit price Unit price Unit price
Items Quantities
2008 2009 2010
Beef 10 20 25 30
Chicken 15 10 12 14
Cigarettes 3 7 7 10
Cost of the market
………… ………… …………
basket
Consumer Price Index ………… ………… …………
a. Fill in the missing parts in the above table.
b. Inflation rate in year 2009 (year 2008 is the base year) is:
………………………………………………………………….
c. Inflation rate in year 2010 (year 2009 is the base year) is:
………………………………………………………………….
d. Inflation rate in year 2010 (year 2008 is the base year) is:
…………………………………………………………………
(3) In year 2010, Country "A" had a population of 5 million
people, just 1 million of country A's population were having a job,
and 600000 people were jobless while they were in working age,
able to work and being desirous of working.
Calculate unemployment rate of country "A" in year 2010.

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