Asked Oct 19, 2019
  1. Now suppose people who had been seeking jobs become discouraged, and give up their job searches. The labor force shrinks to 900,500 workers, and unemployment falls to 500,000 workers. What is the unemployment rate now? Has the economy improved??

Expert Answer

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The unemployment rate shows the proportion of the labor force that is unemployed

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Unemployment rate (number of people unemployed/total labor force)100 =(500,000/900,500) 100 =55.52


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