In a Country with a Working-Age Population of 22 Million

Multiple Choice

In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?

A) 11.1 percent
B) 5.6 percent
C) 8.3 percent
D) 9.4 percent
E) 1.5 percent