Given: 80 million employed; 20 million unemployed; 10 million collecting unemployment insurance benefits; 10 million discouraged workers. Find: (1) the number of people in the labor force; (2) the unemployment rate.

What will be an ideal response?


(a) 80 million + 20 million = 100 million (b) unemployment rate = unemployed/labor force = 20 million/100 million = 20%

Economics

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