In an economy,U = the number of adults who are unemployed,E = the number of adults who are employed,and NLF = the number of adults not in the labor force.The unemployment rate of the economy is equal to:
A)U/(E + NLF).
B)U/E.
C)U/(U + E).
D)U/(U + E − NLF).

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed adults (U) divided by the total labor force, which is the sum of employed (E) and unemployed (U) adults, hence the formula U/(U + E).

In an Economy,U = the Number of Adults Who Are