Consider These Facts: (1) Some People Who Are Employed or Who

Consider these facts: (1) Some people who are employed or who are not making a serious effort to find employment will report themselves as unemployed. (2) Some people who want to find work will be counted as out of the labour force. How do these facts affect the reported unemployment rate?

A) Both the first and the second facts tend to make the reported unemployment rate lower than the actual unemployment rate.
B) Both the first and the second facts tend to make the reported unemployment rate higher than the actual unemployment rate.
C) The first fact tends to make the reported unemployment rate higher than the actual unemployment rate. The second fact tends to make the reported unemployment rate lower than the actual rate.
D) The first fact tends to make the reported unemployment rate lower than the actual unemployment rate. The second fact tends to make the reported unemployment rate higher than the actual rate.