Exhibit 12-3 Unemployment categories
CategoryWorkers
Frictional unemployment250
Structural unemployment350
Cyclical unemployment600
Discouraged workers400
Underemployment450
According to data in Exhibit 12-3 and assuming the total number of people working is 8,400, the unemployment rate is
A. 5 percent.
B. 12.5 percent.
C. 16 percent.
D. 24 percent.
Answer: B
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