Solved

Refer to the Given Information About a Hypothetical Economy

Question 57

Multiple Choice

 Full-time Employed 80 Part-time Employed 25 Unemployed 15 Discouraged Workers 5 Members of Underground Economy 6 Consumer Price Index 110\begin{array} { | l | c | } \hline \text { Full-time Employed } & 80 \\\hline \text { Part-time Employed } & 25 \\\hline \text { Unemployed } & 15 \\\hline \text { Discouraged Workers } & 5 \\\hline \text { Members of Underground Economy } & 6 \\\hline \text { Consumer Price Index } & 110 \\\hline\end{array} 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
O?cial unemployment rate is overstated by about


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents