3. The unemployment rate is defined as (1 - employed/labor force) • 100%. How would the calculated unemployment rate change if, ceteris paribus: (Hint: in each of the questions A-D, what variable in the calculation of the unemployment rate changes, and how does it impact the calculation?)

A. All people between the ages of 16 and 65 were included as part of the labor force?

B. Military people were included in the labor force and as employed.

C. Part-time employees were counted as being in the labor force, but only half-employed.

D. Younger teens and seniors who are working were counted as employed, but, because of their age, not in the labor force.

Question

12 January, 20:47

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Answers (1)

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Alex Haas · Answer 1

The right answer is A. All people between the ages of 16 and 65 were included as part of the labor force.