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Suppose There Are 25,000 Employed and 5,000 Unemployed Persons

question 74

Essay

Suppose there are 25,000 employed and 5,000 unemployed persons.
a.What is the unemployment rate?
b.If 2,000 of those unemployed became discouraged and quit actively seeking work, what would happen to the unemployment rate? Calculate the new unemployment rate.

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Definitions:

Business Combination

Mergers or acquisitions aimed at consolidating resources for growth and competitive advantage.

Pushdown Accounting

The method of accounting for acquisitions where the purchase price of a subsidiary is reflected at fair value on the subsidiary's financial statements, rather than the parent company's.

Acquisition

The process or action in which one company purchases most or all of another company's shares or assets, effectively gaining control over the acquired company.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, and operating results of a parent company and its subsidiaries as if the group were a single entity.

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