Question

Scenario 28-1 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 labor-force participation rate

Answer 1

Answer: 28 million

Step-by-step explanation:

The labor force is the number of people that are employed in addition to the unemployed who are looking for work. The people who want a job but have given up searching for job, students, retirees, and stay-at-home moms, are not part of the labor force

are not in the labor force.

To be part of the labor force, you must be available, and willing to work, or have looked for a job recently. In the above question, the labor force will be the 25 million people employed and the 3 million people unemployed. This will be :

25 million+3 million = 28 million