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Unformatted text preview: Labor Force [LF] = E + U Unemployment Rate: URate = [(U) / (LF)] * 100 MEASURING UNEMPLOYMENT Labor-force Participation Rate: o Fraction of population working for pay or looking for work Labor-force Participation Rate is: o P Rate = (LF / A16+) * 100 o P Rate = (100 million / 120 million) * 100 o P Rate = 83.3% UNEMPLOYMENT RATE MEASUREMENT CORRECT ? Measured Unemployment rate too LOW due to: o Underemployment (Nuclear physicist working as a steel worker instead [not good] ) o Discouraged workers Most unemployment: only a few jobless a long time. o Average duration is short (less than 10 weeks) for most unemployed (75% of unemployed)....
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