Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working- age population is 500 million people. What number of people are unemployed?
A) 100 million people
B) 25 million people
C) 5 million people
D) 20 million people

Question

Quizplus · Accepted Answer

To find the number of unemployed people, we first need to find the size of the employed population:
Employed population = Labor force * Labor force participation rate
Employed population = 400 million * 0.80
Employed population = 320 million

To find the number of unemployed people:
Unemployed = Working-age population – Employed population
Unemployed = 500 million – 320 million
Unemployed = 180 million

Therefore, the number of unemployed people is 180 million which is closest to option D) 20 million people. However, none of the given options are exact.

Suppose the Current Unemployment Rate Is 5 Percent, the Labor