Suppose the adult population is 200 million, the labor force is 160 million, and the number of employed persons is 140 million.

What is the unemployment rate?
What is the labor force participation rate?

Suppose half of the unemployed persons in exercise (1.) become discouraged workers. That is, they stop looking for work and drop out of the labor force.
What is the new unemployment rate?
What is the new labor force participation rate?

2 answers

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