|Posted on April 14, 2014 at 4:20 PM|
The unemployment rate measures the percentage of people in the labor force that are actively looking for employment.
To calculate the rate of unemoployment, take the number of people that are unemployed and looking for work and divide by the number of people that are working plus the number of people looking for work.
Unemployment Rate = Quantity of people unemployed / Quantity of people in the labor force
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AP Macroeconomics Unit 2 Measuring Economic Performance