In March 2007, the U.S. unemployment rate was 4.4 percent. In August 2008, the unemployment rate was 6.1 percent. Predict what
happened to unemployment between March 2007 and August 2008, if the labor force was constant. If the labor force remained constant between March 2007 and August 2008, then the number unemployed _______.
In March 2007, the unemployment rate was 4.4 percent. In August 2008 was 6.1 percent. We need to remember that the unemployment rate equals the number of unemployed people divided by the people in the labor force.
Now, if we consider that the labor force remained constant during this period of time (according to the problem) then this would mean that the number of unemployed people actually increased during this period of 17 months.
