Calculating Unemployment Rate
What is the unemployment rate if there are 2 million unemployed, 1 million discouraged workers, and 100 million in the labor force?
A. 2%
B. 4%
C. 3%
D. 1%
Final answer:
To calculate the unemployment rate, divide the number of unemployed workers by the total labor force and multiply by 100.
Answer:
The unemployment rate would be 2%.
Explanation:
To calculate the unemployment rate, we need to divide the number of unemployed workers by the total labor force and multiply by 100. In this case, the number of unemployed workers is 2 million and the total labor force is 100 million (unemployed + employed workers). Therefore, the unemployment rate would be (2 million / 100 million) * 100, which equals 2%. So the correct answer is Option A: 2%.