Answer:
(a) 530
(b) 9.43%
(c) 3.43%
Explanation:
Given that,
Total population of a country = 1,000
People under 16 years of age = 100
No. of people institutionalized = 120
No. of people are not looking for work = 250
(a) Actual labor force:
= Total population - (People under 16 years of age + No. of people institutionalized + No. of people are not looking for work)
= 1,000 - (100 + 120 + 250)
= 1,000 - 470
= 530
(b) Rate of unemployment:
= (Unemployed people ÷ Actual labor force) × 100
= (50 ÷ 530) × 100
= 9.43%
(c) Real rate of unemployment:
= Rate of unemployment - Non accelerating Inflation Rate of Unemployment
= 9.43% - 6%
= 3.43%