2 Part Question:

1. Consider an economy with a Labor Force of 100 million. 90 million are employed and 10 million are listed as unemployed. What is the unemployment rate? explain how you obtain your answer.
2. Now suppose 5 million workers, who had been discouraged and had dropped out of the labor force, re-enter the labor force and start looking for work. What is the unemployment rate, assuming total employment is still 90 million? Explain how you obtain your answer.