Assume that the total labor force is 100 individuals with 10 unemployed.The unemployment rate is ________.Now assume that 10 people drop out of the labor force and that 10 remain unemployed.The new unemployment rate is ________.
A) 9 percent; 10 percent
B) 10 percent; 9 percent
C) 10 percent; 11 percent
D) 11 percent; 10 percent

Question

Quizplus · Accepted Answer

Initially, the unemployment rate is 10% (10 unemployed out of 100 in the labor force). After 10 people drop out, the labor force is 90, with 10 unemployed, making the new unemployment rate 11%.

Assume That the Total Labor Force Is 100 Individuals with 10