Wednesday, February 3, 2010


Summary: Two-minute drill.

Which of the following is false?

a. The natural rate of unemployment equals the sum of frictional and structural unemployment

b. The labor force participation rate equals the labor force divided by the civilian noninstitutional population

c. Employment plus unemployment equals the labor force

d. The labor force participation rate equals the total employed divided by the civilian noninstutional population

D is the answer.

Extra credit. Why has the labor force participation rate inched upward since the 70's?

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an author, and blogs at Mikeroeconomics.


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