Question:

 The unemployment rate is best described as the ratio of unemployed to: 
A. total population of people who are of working age. 
B. labor force. 
C. labor force minus frictionally unemployed. 

Answer = B 
The unemployment rate is the ratio of unemployed to labor force.

CFA Level I
“Understanding Business Cycles,” by Michele Gambera, Milton Ezrati, and Bolong Cao
Section 4.1

 

 

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