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) 20 million people
D) 5 million people

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed people divided by the labor force. With a 5% unemployment rate and a labor force of 400 million, the number of unemployed people is 5% of 400 million, which is 20 million people.

Suppose the Current Unemployment Rate Is 5 Percent, the Labor