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Suppose the population of a country is 1.1 million and the labor force is 800,000. 760,000 are employed. Assume that full-employment occurs at a 4 percent unemployment rate at a real GDP level of $100
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26 votes
Suppose the population of a country is 1.1 million and the labor force is 800,000. 760,000 are employed. Assume that full-employment occurs at a 4 percent unemployment rate at a real GDP level of $100 billion. Based on the information above, what is the unemployment rate

User Isaac Betesh
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1 Answer

25 votes
25 votes

Answer: 5%

Step-by-step explanation:

Unemployment rate = Number unemployed / Labor force * 100%

The number of people who are unemployed are:

= Labor force - Employed people

= 800,000 - 760,000

= 40,000 people

Unemployment rate = 40,000 / 800,000 * 100%

= 5%

User Martin Weber
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3.0k points
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