Scenario: Consider Country A with a population of 2 million people. In Country A, there are 1.5 million people employed; 0.3 million younger than 18, in school or retired; 0.1 million voluntarily unemployed; and 0.1 million people officially unemployed.
-Refer to the scenario above.Suppose the market clearing wage rate increases in Country A and now only 0.05 million people are voluntarily unemployed,but there are still only 1.5 million people working.What is the new unemployment rate?
A) 6 percent
B) 7.6 percent
C) 9.1 percent
D) 10 percent
Correct Answer:
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