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In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year

Economics Dec 31, 2021

In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year. What percentage of the unemployment spells you encountered was short-term, and what percentage of the unemployment you encountered in a given week was long-term?

The answer is:

d. 86.7 percent and 88.9 percent

 

unemployment rate:

=# of unemployed/labor force*100%

labor force=employed + unemployed

labor force is then 52+8=60

unemployment rate is 52/60*100=86.7% short term

 

How do I calculate the long term? Thanks

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