Question

Hovana has a labor force of 150 million people, 15 million of whom are currently frictionally unemployed and another 5 million of whom are currently structurally unemployed.

If Hovana's actual unemployment rate is 13.3 percent, you can conclude that __________________________.

Answer 1

Using the given data, the number of unemployed in Hovana is the sum of frictionally and structurally unemployed people, totaling 20 million. The unemployment rate calculation of (Total unemployed / Labor force) × 100 confirms the provided unemployment rate of 13.3%.

Step-by-step explanation:

If we are given that Hovana has a labor force of 150 million people, with 15 million frictionally unemployed and 5 million structurally unemployed, and an actual unemployment rate of 13.3%, we can conclude the following:

The number of people unemployed in Hovana is:
Frictionally unemployed: 15 million
Structurally unemployed: 5 million
Total unemployed: 15 million + 5 million = 20 million

Since the unemployment rate is the number of unemployed people divided by the total labor force, we calculate it as:
Unemployment rate = (Total unemployed / Labor force) × 100
Unemployment rate = (20 million / 150 million) × 100 = 13.3%

This confirms that the provided data is consistent and correctly represents an unemployment rate of 13.3% for Hovana.