Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. how many people are in the working-age population in this economy?

Question

Brent Andrews

Business

29 May, 23:29

Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. how many people are in the working-age population in this economy?

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Lilliana · Answer 1

200 m + Labor Force = Working Age Population

Since the participation rate is 80%,

so we know that Labor Force = 0.80 x Working Age Population

Thus, 200 m + 0.80 Working Age Population = Working Age Population

200 m = Working Age Population (1-0.80)

Solving for working age population,

we get Working Age Population = 200 m / 0.2 = 1000 m

The working age population is 1000 million.