Answer:
a) 29%
Explanation:
The formula to compute the unemployment rate is shown below:
Unemployment rate = (Number of Unemployed workers) ÷ (Total labor force) × 100
where,
Number of unemployed = 40 million
Total labor force = Number of unemployed + number of employed
= 40 million + 100 million
So, the unemployment rate would be
= (40 million) ÷ (140 million) × 100
= 29%
Since the increasing level of government transfers only transfers the wealth without actual creation of goods/services, Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity. Not only that, <span>.Greater transfer activity diverts productive resources into rent-seeking activity</span>
Nyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy
