If 8 million people are unemployed and the labour force is 80 million, the unemployment rate is
Correct answer: B. 10 percent
- A. 8 percent
- B. 10 percent
- C. 12 percent
- D. 20 percent
Explanation
The unemployment rate equals unemployed people divided by the labour force, multiplied by 100. Thus, 8 million divided by 80 million gives 10 percent.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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