Answer:
a) 85%
b) 5%
c) 3.5%
Explanation:
Given;
Number of residents = 200 million
Labor force = 170 million
Unemployed = 10 million
a) Labor force participation rate = [tex]\frac{\textup{Labor Force}}{\textup{Number of residents}}[/tex]
or
Labor force participation rate = [tex]\frac{\textup{170 million}}{\textup{200 million}}[/tex]
or
Labor force participation rate = 0.85 or 85% (0.85 × 100%)
b) unemployment rate = [tex]\frac{\textup{Unemployed}}{\textup{Number of residents}}[/tex]
or
unemployment rate = [tex]\frac{\textup{10 million}}{\textup{200 million}}[/tex]
or
unemployment rate = 0.05 or 5% (0.05 × 100%)
c) Number of unemployed who became discouraged and stop looking for work = 3 million
Therefore,
The unemployed population = 10 million - 3 million
= 7 million
Thus,
new unemployment rate = [tex]\frac{\textup{New Unemployed}}{\textup{Number of residents}}[/tex]
or
New unemployment rate = [tex]\frac{\textup{7 million}}{\textup{200 million}}[/tex]
or
New unemployment rate = 0.035 or 3.5% (0.035 × 100%)
