Assume that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is
) Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is .
A) 11 percent, 10 percent
B) 10 percent, 11 percent
C) 10 percent, 9 percent
D) 9 percent, 10 percent
Correct Answer:
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