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.

What is the total labor force?

Answer 1

28 million are in Mankiwland's Labor force

Step-by-step explanation:

The Department of Labor defines the labor force (in simplified terms) as anyone who is employed, or unemployed (available to work; searching for work).

The labor force count excludes institutionalised (prisoners, retirees in retirement homes, etc.) and discouraged workers (able to work, but have no interest to seek employment).

Because if this, only the employed population (25 million) and the unemployed population (3 million) ate counted, adding up to a labor force of 28 million.