Below are some statistics of Oz Land:

Adult population = 20 million

Labour force = 12 million

Unemployment rate = 5%

(a) Calculate the number of people unemployed.

[2 marks]

(b) Calculate the labour force participation rate.

[2 marks]

(c) Explain any two (2) reasons why the unemployment rate may overstate or understate the 'true' unemployment rate.

[3 marks]

(d) Explain if the unemployment rate can be reduced to 0%.

[3 marks]