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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?
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