# Which of the following is the correct way to calculate the unemployment rate?

0 Also Check This  Why do people say shutup? When shut don’t go up????? if u get what i mean..?

1.

2.

(D) Productivity shocks are the cause of most business
cycles

3.

Cyclical unemployment

(It occurs due to changes in business cycles)

4.

(Unemployed/LF)100

Where, LF = Employed + Unemployed

5.

Labor force = 260-60 = 200 M

Unemployed = 12 M

Unemployment rate = 12/200 = 6%

6.

Labor force = 80+25+15 = 120 M

Unemployed = 15 M

Unemployment rate = 15/120 = 12.5%

7.

New Labor force = 80+25+15+6 = 126 M

Unemployed = 15+6 = 21 M

Unemployment rate = 21/126 = 16.67%

When underground workers are actually employed:

Also Check This  Three student chemists measure 50.0 mL of 1.00 M NaOH inQ separate Styrofoam “coffee cups” calorimeters.?

New Labor force = 80+25+15+6 = 126 M

Unemployed = 15 M

Unemployment rate = 15/126 = 11.9%

Overstate in unemployment rate = 16.7% – 11.9% = 4.8%

Correct option: (a) 5 percent points 