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Consider Netflixalia's 5 million residents. Of these 5 million people, in 2021: 3 million are working full-time. 300,000 are working part-time. 600,000 are under the age of 16. 400,000 are retired. 500,000 are unemployed and actively looking for work. The remainder are not working and not looking for work (i.e., full-time students or stay-at-home parents).The unemployment rate is blank1 - Numeric Answer% (in percentage).The labor force of this economy is blank2 - Numeric Answer millions.

Question

Consider Netflixalia's 5 million residents. Of these 5 million people, in 2021: 3 million are working full-time. 300,000 are working part-time. 600,000 are under the age of 16. 400,000 are retired. 500,000 are unemployed and actively looking for work. The remainder are not working and not looking for work (i.e., full-time students or stay-at-home parents).The unemployment rate is blank1 - Numeric Answer% (in percentage).The labor force of this economy is blank2 - Numeric Answer millions.

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Solution

The unemployment rate and labor force can be calculated as follows:

  1. The labor force is the sum of all individuals who are either employed or actively looking for work. In this case, it includes those working full-time (3 million), those working part-time (300,000), and those unemployed and actively looking for work (500,000).

    Labor force = 3,000,000 (full-time workers) + 300,000 (part-time workers) + 500,000 (unemployed and actively looking for work) Labor force = 3,800,000

    So, the labor force of this economy is 3.8 million.

  2. The unemployment rate is the percentage of the labor force that is unemployed and actively looking for work.

    Unemployment rate = (Number of unemployed / Labor force) * 100 Unemployment rate = (500,000 / 3,800,000) * 100 Unemployment rate = 13.16%

So, the unemployment rate is 13.16% and the labor force of this economy is 3.8 million.

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