Data for an economy shows that the unemployment rate is 10%, the participation rate 75 percent, 200 million people 16 years or older are not in the labor force. How many people are employed in this economy?
Answer: 540 million
Participation rate =75%
Non participation rate =25%
25% =200 million
100% = 800 million
Participation labor force = 800*0.75 =600
Unemployment rate =10%
Employed =600*(0.9) = 540 million
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