Picture an economy with 100,000 workers in its labor force. The unemployment rate is simply the number of unem

Question

Picture an economy with 100,000 workers in its labor force. The unemployment rate is simply the number of unemployed workers divided by the number of workers in the labor force. At the beginning of January, the unemployment rate is 4.76%, so 4,760 people in the labor force are unemployed.

2.2. Suppose in addition that during January the job separation rate equals 1%. That is, 1% of the people who were employed at the beginning of the month are laid off or quit. How many people are added to the unemployment rolls that month? (Round your answer to the nearest whole number.)

A. 1,058

B. 349

C. 952

D. 1,122

E. 564

Answer 1

C. 952

Answer 2

C. 952

(100'000-4'760)*0.01=952.4