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Exhibit 12-2 Unemployment Categories The Unemployment Rate for the Economy in Exhibit 12-2 Is

Question 42

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Exhibit 12-2 Unemployment categories  Category  # of  Individuals  Frictional unemployment 20 Structural unemployment 35 Cyclical unemployment 60 Discouraged workers 5 Underemployed workers 10 Fully employed workers 410 Population 900\begin{array} { | l | c | } \hline \text { Category } & \begin{array} { c } \text { \# of } \\\text { Individuals }\end{array} \\\hline \text { Frictional unemployment } & 20 \\\text { Structural unemployment } & 35 \\\text { Cyclical unemployment } & 60 \\\text { Discouraged workers } & 5 \\\text { Underemployed workers } & 10 \\\text { Fully employed workers } & 410 \\\text { Population } & 900 \\\hline\end{array} The unemployment rate for the economy in Exhibit 12-2 is:


A) 12.8 percent.
B) 21.5 percent.
C) 22.2 percent.
D) 30.5 percent.

Correct Answer:

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