If the Number of Unemployed Equals 240,000 and the Number

question 110

Multiple Choice

If the number of unemployed equals 240,000 and the number of employed equals 300,000, the labor-force participation rate

• A) is 80%.
• B) is 55.6%.
• C) is 24%.
• D) cannot be determined from this information.

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Definitions:

Long-run Unemployment

A situation where the unemployment rate persists at a high level for a long period of time, often due to structural changes in the economy.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and reporting data on employment, labor market activity, working conditions, and price changes.

Average Workweek

The average number of hours worked per week by employees in a specific sector or economy.

Natural Rate

The long-term rate of unemployment around which the job market is in balance, where all those willing to work at prevailing wage rates can find employment.