Econia has a population of 1 million. In 2017, the population and employment data included 650,000 persons over age 16, 400,000 employed persons, and 30,000 unemployed persons. In 2018, the numbers remained the same EXCEPT that 2,000 people who were previously counted as unemployed are now classified as discouraged workers. Exactly how would the 2018 unemployment rate (U3) compare to the 2017 unemployment rate?
A) The rate rises from 6.5% in 2017 to 7.0% in 2018.
B) The rate rises from 4.6% in 2017 to 7.0% in 2018.
C) The rate remains steady at 4.6% in both years.
D) The rate drops from 7.0% in 2017 to 6.5% in 2018.
Correct Answer:
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