ECONOMICS (CBSE/UGC NET)

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ECONOMICS

BUSINESS CYCLES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is the correct formula for calculating the unemployment rate in the US?
A
#unemployed/labor force x100
B
#labor force/working age population x100
C
#unemployed/#employed x100
D
#labor force/60, 000 (BLS household survey
Explanation: 

Detailed explanation-1: -The civilian labour force, as mentioned in the formula, consists of both employed and unemployed people. This completes the topic on the Unemployment Rate formula, which plays an important role in determining the unemployment rate in an economy.

Detailed explanation-2: -The unemployment rate represents the number of unemployed people as a percentage of the labor force (the labor force is the sum of the employed and unemployed). The unemployment rate is calculated as: (Unemployed รท Labor Force) x 100.

Detailed explanation-3: -Explanation: Total number of unemployed / total labour force multiplied by 100 is the correct formula to find out the unemployment rate.

Detailed explanation-4: -The unemployment rate is calculated by dividing the number of unemployed people by the potential labor force, and then times 100 to get the percentage of people unemployed.

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