If the number of unemployed workers doubled and the number of employed workers stayed the same,the unemployment rate would

A) fall.
B) stay the same.
C) rise by less than 100%.
D) rise by 100%.
E) rise by more than 100%.

Question

Isabelle Claude · Accepted Answer

Final Answer : C, Explanation :  The unemployment rate is calculated as the number of unemployed workers divided by the total labor force (sum of employed and unemployed workers). If the number of unemployed workers doubles while the number of employed workers stays the same, the total labor force increases, but not by double. Therefore, the unemployment rate increases but by less than 100% because the denominator (total labor force) also increases, diluting the effect of the doubling of the unemployed workers.

If the number of unemployed workers doubled and the number of employed workers stayed the same,the unemployment rate would

A) fall.
B) stay the same.
C) rise by less than 100%.
D) rise by 100%.
E) rise by more than 100%.

Definitions

Learning Objectives

Learning Objectives

Related questions

If the number of unemployed workers doubled and the number of employed workers stayed the same,the unemployment rate wouldA) fall.B) stay the same.C) rise by less than 100%.D) rise by 100%.E) rise by more than 100%.

Definitions

Learning Objectives

Learning Objectives

Related questions

If the number of unemployed workers doubled and the number of employed workers stayed the same,the unemployment rate would

A) fall.
B) stay the same.
C) rise by less than 100%.
D) rise by 100%.
E) rise by more than 100%.