Suppose there are 300 million able-bodied, working age adults in a society.

Suppose there are 300 million able-bodied, working age adults in a society.

-12 million are actively looking for a job, but have no yet found one

-40 million are stay at home moms (dads) who are not looking for paid work outside the home

-20 million are discouraged workers

-50 million have part-time jobs, but would prefer full-time employment

-everyone else has a full-time job

a. What is the labor force participation rate?

b. what is the unemployment rate?