Suppose that an economy has 10 million people working full time and another 2 million people actively seeking work

Economics Nov 11, 2020

Suppose that an economy has 10 million people working full time and another 2 million people actively seeking work. An additional 1 million people had been unemployed, but they have become discouraged by the poor state of the economy and have given up looking for work. What's the size of the economy's labor force? O A. 12 million people OB. 13 million people C.7 million people D. 8 million people

Expert Solution

Laborforce=employed+unemployed (discouraged doesnot counted in laborforce)

Laborforce=10 million+2 million =12 million

Therefore answer is option A.12 million people

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