Three economics students are discussing the upcoming presidential election. Thei

Question

Three economics students are discussing the upcoming presidential election. Their discussion turns to an argument when they read what the presidential candidates say about the labor market. President Obama says that “When I took office in January 2009, there were 140 million people working. And now in August 2012, there are 143 million people working. More people are working now than when I took office.” Mitt Romney, the Republican challenger to President Obama, says that “When President Obama took office in January 2009, the unemployment rate was 7.8 percent. Today, almost four years later, in August 2012, the unemployment rate is 8.1 percent. The unemployment rate is higher today than when President Obama became president.” Determine which of the students has the correct argument.

Millie: "Well, one of them is mistaken. It's not possible for the unemployment rate to increase while the number of employed also increases."

Miguel: "No, Millie. Both President Obama and Mitt Romney could be telling the truth if the labor force grew much faster than the number of employed."

Morgan: "Not quite, Miguel. Obama and Romney could be telling the truth, but only if the labor force grew by the exact same rate as the number of employed."

Only Millie is correct.

Only Miguel is correct.

Only Morgan is correct.

Both Millie and Morgan are correct.

Only Millie is correct.

Only Miguel is correct.

Only Morgan is correct.

Both Millie and Morgan are correct.

Explanation / Answer

Only Miguel is correct.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.