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Full-Time Employed = 80 Part- Time Employed = 25 Unemployed

Question 48

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Full-Time Employed = 80 Part- Time Employed = 25 Unemployed = 15 Discouraged
Workers = 5
Members of Underground Economy = 6
Consumer Price Index = 110
Refer to the given information about a hypothetical economy.If members of the underground economy are currently counted as part of the unemployed when in fact they are employed, the official unemployment rate is overstated by about


A) 0 percentage points.
B) 2 percentage points.
C) 5 percentage points.
D) 6 percentage points.

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