Initial rate question?

Economic question about labor force participation rate and unemployment rate, help! see details.?

  • Assume that the population over 15 is 150 million, the number of discouraged workers is equal to 1 million, the unemployment rate is 10% and the labor force participation rate is 60%. If 3 million more workers who had previously been unemployed become discouraged workers, then the new labor force participation rate will be____ and the new unemployment rate will be____? a) 60% and 10% b) 58% and 6.9% c) 60% AND 6.67% d) 58% AND 10.3%

  • Answer:

    The labor force participation rate is already considered in the 60% - so. Participation rate is simply 150 * .6 = 90 mil are in the labor force. The unemployment rate is 10%, which means 9 mil are unemployed. If 3 million drop from the labor force, that means that 6 mil are now unemployed, out of a labor force of 87 mil. 6/87 = ??? is your unemployment rate The labor force participation rate you also have.....

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