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Understanding the Answer
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Answer
To calculate the unemployment rate, you start by determining the total number of unemployed individuals. Next, you calculate the total labor force, which includes both employed and unemployed people. After you have both numbers, you divide the number of unemployed individuals by the total labor force to find the proportion of unemployed people. Finally, you multiply that result by 100 to convert it into a percentage. For example, if there are 10 unemployed people and the total labor force is 100, the unemployment rate would be (10/100) * 100, which equals 10%.
Detailed Explanation
First, we find out how many people are unemployed. Other options are incorrect because This option suggests starting with the total labor force before knowing how many are unemployed; This option puts division before finding the number of unemployed and the labor force.
Key Concepts
Unemployment Rate Calculation
Labor Force Participation
Economic Indicators
Topic
Calculating Unemployment Rate
Difficulty
easy level question
Cognitive Level
understand
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