The labour force participation rate measures the proportion of the working-age population that
Correct answer: B. Is either employed or actively seeking work
- A. Has a job at the prevailing wage
- B. Is either employed or actively seeking work
- C. Is unemployed and receiving benefits
- D. Works in the formal sector only
Explanation
The labour force consists of employed people and unemployed people who are actively seeking work. The participation rate divides this labour force by the working-age population.
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About Macroeconomics
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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