Question

Suppose the number of employed people in an economy is 314 comma 601 comma 739. The unemployment rate in this economy is 7.9 percent, or 0.079, and the labor force participation rate is 83.0 percent, or 0.83.

          Suppose the number of employed people in an economy is 314 comma 601 comma 739. The unemployment rate in this economy is 7.9 percent, or 0.079, and the labor force participation rate is 83.0 percent, or 0.83.
        

Added by Ruben S.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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Suppose the number of employed people in an economy is 314 comma 601 comma 739. The unemployment rate in this economy is 7.9 percent, or 0.079, and the labor force participation rate is 83.0 percent, or 0.83.
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Transcript

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00:01 So here we are talking about labor force stats.
00:03 And in part a, we are given the number of people who are employed, which is 50 million.
00:09 And we are given the number of people who are unemployed, which is 4 million.
00:14 And we are asked to compute the unemployment rate.
00:18 So the unemployment rate is equal to the number of people who are unemployed over the number of people who are employed.
00:26 That's just the definition that you should know.
00:32 It's the unemployed versus what we would call the labor force.
00:36 This is sometimes called the labor force, the people who are working plus the people who want to work.
00:42 So we have 4 million over 4 million plus 50 million.
00:48 And that requires a calculator, at least for my weak brain.
00:53 But this gives me an unemployment rate of 7 .4%, which as you point out, is indeed not...
00:59 I suspect that they're looking for a...
01:02 Maybe one more decimal here...
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