Question

Suppose in an economy there are 1 million employed people, 2 million unemployed people and a total adult population of 6 million people. Answer the following:
a) What is the labor force?
b) What is the unemployment rate?
c) What is the labor force participation rate?

Answer 1

a) 1 million + 2 million = 3 million

b) 2/3*100% = 67%

c) 3/6*100% = 50%