In 2013 there were approximately 155 million people in the l

In 2013, there were approximately 155 million people in the labor force and the unemployment rate was 7.4 percent. If the unemployment rate had been 5 percent instead of 7.4 percent Instructions: Enter your response rounded to one decimal place (a) how many more workers would have been employed? million (b) how many fewer would have been unemployed? millon

Solution

a) Solution: 3.72 million

Working:

155 million * 7.4% = 11.47 million

155 million * 5% = 7.75 million

11.47 - 7.75 = 3.72 million

b) Solution: 3.72 million

Working: The same number 3.72 million would have remain unemployed