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 unemployment rate? a.3.3% b.12% c.10.7% d.6.7%

Answer 1

The correct answer is C.

Step-by-step explanation:

Giving the following information:

25 million people employed

3 million people unemployed

The unemployment rate is calculated using the active population. The active population includes people working and unemployed people actively looking for a job.

Unemployment rate= unemployed people/ active population

Unemployment rate= 3,000,000/ 28,000,000

Unemployment rate= 10.7%