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Comment on the following statement:
“If the number of unemployed workers in the country stays the same but the number of people living in the country increases, the unemployment rate will decrease.”

Category : Macro Economics | Answer: 1 8 Months Ago

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The unemployment rate is defined as the number of unemployed (those out of work and either actively looking for a job or waiting to be recalled from a layoff) divided by the total work force. It is not clear whether the new residents of the country will become part of the work force (either working or unemployed) or not. Thus we cannot tell what happens to the unemployment rate in this situation.   

 

8 Months Ago
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Ram brat gope

the unemployment rate will increase simply because the increase in head count must be constituing work force,may be to some extent

8 Months Ago