Answer
The unemployment rate is the better indication of how the economy is doing as it focuses more on the actual subset of the population who might be employed. The employment-population rate is the number of people employed divided by the total population, which includes people who are not in the labor force.
The unemployment rate is the number of people employed divided by the labor force (which is the sum of the number of employed people and the number of people not employed).
Work Step by Step
a) The unemployment rate increases, and the employment-population rate decreases.
b) The unemployment rate decreases, and the employment-population rate stays the same.
c) The unemployment rate increases, and the employment-population rate stays the same.
d) The unemployment rate decreases, and the employment-population rate increases.
e) The unemployment rate increases, and the employment-population rate decreases.
f) The unemployment rate stays the same, and the employment-population rate decreases.
