In march, 2006 the labor department of the country of jobland determined that the size of the labor force was 100 million out of which 92 million were employed. in may 2006, the labor department determined that 1.5 million people became "discouraged workers" in april.
assuming that no new jobs were created between march and april, calculate the unemployment rate for march and april.
jobland unemployment rate in march =
nothing percent. (enter your response rounded to one decimal place.)

a). Unemployment rate in March=8%

b). Unemployment rate in April=9.4%

Explanation:

a).

The unemployment rate can be expressed as;

R=P/L

where;

R=unemployment rate

P=number of unemployed persons

L=labor force

In our case;

R=unknown

P=number of unemployed persons=labor force-number of employed persons

P=100-92=8 million

L=100 million

replacing;

R=8/100=0.08×100=8%

The unemployment rate in March=8%

b).Unemployment rate for April

Unemployment rate={(total unemployed+discouraged workers)/(labor force+discouraged workers)}×100

total unemployed=8 million

discouraged workers=1.5 million

labor force=100 million

replacing;

Unemployment rate=(8+1.5)/(100+1.5)=(9.5/101.5)×100=9.4%

Unemployment rate in April=9.4%

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;