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Macroeconomics

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Calculating Labor Force, Unemployment, and Employment Figures

MACRO-YGNVUR

Suppose the working age population in the city of Old Valyria is 10 million and, partly due to a recent outbreak of malaria, only 50 percent of these people are willing and able to work. Further, economic activity has plummeted and, as a result, the unemployment rate is 25%.

Which of the following correctly indicates how many people are employed in Old Valyria?

A

5 million.

B

8.75 million.

C

3.75 million.

D

2.5 million.