Suppose the Bureau of Labor Statistics reports that the noninstitutional civilian population is 250 million.Of those,150 million are employed and 5 million are unemployed.Of the 150 million employed,5 million would like to be working twice as many hours and of the 250 million,5 million have given up the search for work.The unemployment rate reported by the BLS would be __________,while if the BLS counted the discouraged workers as unemployed the unemployment rate would be __________.

Question

Quizplus · Accepted Answer

The unemployment rate reported by the BLS is calculated by dividing the number of unemployed individuals by the labor force, which consists of employed and unemployed individuals actively seeking work.

So, the labor force would be: 
150 million (employed) + 5 million (unemployed) = 155 million

The unemployment rate reported by the BLS would be: 
5 million (unemployed) / 155 million (labor force) = 3.2%

If the BLS counted the discouraged workers as unemployed, the labor force would increase to: 
150 million (employed) + 5 million (unemployed) + 5 million (discouraged workers) = 160 million

The unemployment rate would be: 
5 million (unemployed) / 160 million (labor force) = 3.125%

Therefore, the correct answer is C (6.25%; 2%).

Suppose the Bureau of Labor Statistics Reports That the Noninstitutional