Exhibit 12-2 Unemployment Categories Consider an Economy Made Up of 100 People, 50 of |

Exhibit 12-2 Unemployment categories $$\begin{array} { | l | c | } \hline \text { Category } & \begin{array} { c } \text { \# of } \\\text { Individuals }\end{array} \\\hline \text { Frictional unemployment } & 20 \\\text { Structural unemployment } & 35 \\\text { Cyclical unemployment } & 60 \\\text { Discouraged workers } & 5 \\\text { Underemployed workers } & 10 \\\text { Fully employed workers } & 410 \\\text { Population } & 900 \\\hline\end{array}$$ Consider an economy made up of 100 people, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The unemployment rate is approximately:

A) 10 percent.
B) 12 percent.
C) 17 percent.
D) 20 percent.