Answer the question on the basis of the following information about a hypothetical economy: Full-Time Employed = $\mathbf { 8 0 }$
Part-Time Employed = 25
Unemployed $= 15$
Discouraged Workers = 5
Members of Underground Economy = 6
Consumer Price Index $= 110$ Refer to the given information.If the members of the underground economy are presently counted as part of the unemployed when in fact they are employed,the official unemployment rate is overstated by about:

Question

Quizplus · Accepted Answer

The members of the underground economy are not included in the official employment statistics. Therefore, if they are currently being counted as unemployed, the official unemployment rate is overstated. If the underground economy represents a significant portion of the overall economy, then the impact on the official unemployment rate could be substantial. A 5 percentage point overstatement would be a reasonable estimate in this scenario.

Answer the Question on the Basis of the Following Information 80\mathbf { 8 0 }80

Answer the Question on the Basis of the Following Information $\mathbf { 8 0 }$