The official unemployment rate is the number of unemployed people divided by the

Question

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The official unemployment rate is calculated by dividing the number of unemployed people by the size of the labor force, which includes both employed and unemployed people who are actively seeking employment. Choice A is incorrect because it divides the unemployed by only the number of employed people. Choice B is incorrect because it includes the entire population, including those who are not in the labor force. Choice C is incorrect because it excludes those who are institutionalized, and Choice E is incorrect because it includes those who are not in the labor force, such as retirees, students, and those who are not seeking employment.

The Official Unemployment Rate Is the Number of Unemployed People