I believe the answer is A but I would appreciate a second opinion.
Option 1.
Labor force = No of Unemployed + No of Employed
= 10+ No of Employed
= 10+40 = 50
As the unemployment rate is 20 percent, No of employed is 40 million
Unemployment rate = no of unemployed (No of employed + No of unemployed)
= 10/(1+40) = 10/50 =0.2 = 20 percent
Now with the working population of 70 million, and labor force equal to 50 million, people not in the labor force is 70-50=20 million
I believe E is the correct answer but I would appreciate a second opinion.
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