Which of the following is the correct interpretation of an unemployment rate of $4 \% ?$

Choose 1 answer:
(A) $4 \%$ of the population is looking for work.
(B) Four percent of the population has given up looking for work.
(C) $4 \%$ of the population is out of work and looking for work.
(D) Four percent of the population is in the labor force.
(E) $4 \%$ of the labor force is out of work and looking for work.

Question

Which of the following is the correct interpretation of an unemployment rate of $4 \% ?$

Choose 1 answer:
(A) $4 \%$ of the population is looking for work.
(B) Four percent of the population has given up looking for work.
(C) $4 \%$ of the population is out of work and looking for work.
(D) Four percent of the population is in the labor force.
(E) $4 \%$ of the labor force is out of work and looking for work.

Accepted Answer

***E*** ∻Key Concept∻ ⚹Unemployment Rate⚹ ∻Explanation∻ ⚹The unemployment rate is the percentage of the labor force that is out of work and actively looking for employment.⚹◊What impact does a lower unemployment rate typically have on the overall economy in terms of inflation and consumer spending?⍭ Generate me a similar question◊

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