Question

QUESTION 18

1. The labor force is the

   		number of employed people plus the number of unemployed people.
   		total population divided by the number of employed people.
   		number of employed people in the working-age population.
   		number of employed people minus the number of unemployed people.

2 points   

QUESTION 19

1. Category	Number of People (Millions)
   Total Population	300
   Working-Age Population	220
   Labor Force	145
   Employed Workers	140

   Calculate the unemployment rate. (Round to two decimal places)

   Calculate the Labor Force Participation Rate.  (Round to two decimal places)

4 points   

QUESTION 20

1. The unemployment rate generally ________ during recessions and generally ________ during expansions.

   		decreases; decreases
   		increases; does not change
   		increases; decreases
   		decreases; increases

Answer 1

18. a. number of employed people plus the number of unemployed people.

The labor force is the labor pool in employment. Labor force= employed + unemployed.

19. Unemployed = labor force - employed = 145- 140 = 5.

Unemployment rate = unemployed/ labor force x 100 = 5/145 x 100 = 3.44%

Labor Force Participation Rate = labor force/ working age population x 100 = 145 /220 x 100 = 65.90%

20. c. increases; decreases

During recession the business activity reaches its minimum and thus a lot of workers are laid off. The unempoyment rate increases during recession and the opposite happens during expansion when businesses are booming.