Labor Economics 5th Edition by George Borjas

Exercise 3

(a) How does the exclusion of nonworking welfare recipients affect the calculation of the unemployment rate Use Tables 525 and 569 of the 2008 U.S. Statistical Abstract to estimate what the 2005 unemployment rate would have been if welfare recipients had been included in the calculation.
(b) How does the exclusion of workers in the underground economy affect the calculation of the unemployment rate Estimate, the best you can, what the 2005 unemployment rate would have been if workers in the underground economy had been included in the calculation.