Question

Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. Refer to Scenario 28-1. What is the unemployment rate

Answer 1

Answer:

Unemployment rate= 37.5%

Explanation:

Giving the following information:

5 million people employed

3 million people unemployed

1 million discouraged workers

1 million people who are either students, homemakers, retirees, or other people not seeking employment.

To calculate the unemployment rate, we need to use the following formula:

Unemployment rate= (unemployed people/labor force)*100

The labor force is the number of people working and actively looking for a job.

Unemployment rate= (3,000,000/8,000,000)*100

Unemployment rate= 37.5%