Suppose there are 12 million part-time workers and 104 million full-time workers in an economy.Four million of the part-time workers switch to full-time work.We can conclude that

Question

Quizplus · Accepted Answer

The official unemployment rate is calculated as the number of unemployed individuals divided by the labor force. Since the number of part-time workers who switched to full-time work is not considered unemployed anymore, the number of unemployed individuals will decrease. However, the labor force will also increase by 4 million, which balances out the decrease in the number of unemployed individuals. Therefore, the official unemployment rate will remain unchanged.

Suppose There Are 12 Million Part-Time Workers and 104 Million