Principles of Economics Study QuestionUnemployment 1 Bebold

Principles of Economics Study Question-Unemployment 1. Bebold the following information cdncerning a hypothetical economy: roun Number of people aver 16 working: 45 million ber of discouraged workers over 16: 3 million Number of people over 16 workding pat time: 5 million Of cial unemployment rate: 5% Calculate the number of officialy unemployed people in the economy plove x 100 Labor Force

Solution

Solution:

Unemployment rate = unemployed people / total labor force * 100

Total labor force = Number of people over 16 working + Number of people over 16 working part time = 45 million + 5 million = 50 million

Unemployment rate = unemployed people / total labor force * 100

0.05 = unemployed people / 50,000,000 * 100

unemployed people = 0.05* 50,000,000/100

unemployed people = 25,000