The number of people who are not working and are looking for jobs divided by the total number of people who are working or looking for jobs is known as:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Unemployment rate
People not working but looking for jobs, divided by all people working or looking for jobs, gives the unemployment rate.
NCERT (2026-27): “1.1 Emergence of Macroeconomics … Demand for goods in the market was low, many factories were lying idle, workers were thrown out of jobs. In USA, from 1929 to 1933, unemployment rate rose from 3 per cent to 25 per cent (unemployment rate may be defined as the number of people who are not working and are looking for jobs divided by the total number of people who are working or looking for jobs). Over the same period aggregate output in USA fell by about 33 per cent. …” |