Scenario: Consider Country a with a Population of 2 Million

Multiple Choice

Scenario: Consider Country A with a population of 2 million people. In Country A, there are 1.5 million people employed; 0.3 million younger than 18, in school or retired; 0.1 million voluntarily unemployed; and 0.1 million people officially unemployed.
-Refer to the scenario above.Suppose that,given the numbers in the initial scenario,20 percent of the people reported as officially unemployed are actually only looking for jobs with wages above the market clearing wage rate.What is the true unemployment rate,given this information?

A) 4.5 percent
B) 5.1 percent
C) 6.25 percent
D) 10 percent