Which of the following most accurately describes how to calculate the unemployment rate?
A)(Unemployed / population) × 100
B)(Unemployed / employed) × 100
C)(Unemployed / labor force) × 100
D)[(Unemployed - employed) / labor force] × 100

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labor force (which includes both employed and unemployed individuals) multiplied by 100 to express it as a percentage. So the formula is (Unemployed / Labor Force) x 100. Choice A is incorrect because it divides the number of unemployed individuals by the total population, which is not an accurate representation of the labor force. Choice B is incorrect because it divides the number of unemployed individuals by the number of employed individuals, which is also not a relevant calculation for determining the unemployment rate. Choice D is incorrect because it subtracts employed individuals from unemployed individuals, which again is not the right calculation for determining unemployment rate.

Which of the Following Most Accurately Describes How to Calculate