Suppose in a nation called Utopian (which happens to calculate unemployment rates the same way the United States does) has the following data: the number of discouraged workers is 30 million people; the number of stay at home spouses is140 million people; the number of underemployed workers is 20 million people; the number of phantom unemployed persons is 2 million people; number of officially classified unemployed persons equals 8 million people; the number of officially employed persons is 200 million and the civilian non-institutionalized population equals 600 million people.

(a) Based on this information, calculate the official unemployment rate to the second decimal place (hundredths place).

(b) In one factual sentence, clearly explain what information your answer in (a) above tells us.

In other words, the unemployment rate you calculated in (a) above tells us what information?

(c) Now if the number of discouraged workers were reclassified as officially unemployed persons, how would this change the reported unemployment rate?

(d) Based on your answers for (a) and (c) above, would you say that by the Bureau of Labor Statistics not counting discouraged workers as unemployed persons, that the reported unemployment rate tends to underestimate or overestimate the unemployment situation in the country?

(e) Please explain who discouraged workers represent and what is it about discouraged workers that has the reported unemployment rate either underestimating or overestimating the unemployment situation in the country?