Consider the population of a small country, assuming that the number of people in each category is as follows:

total population = 1,200

children under age 14 = 200

elderly retired people = 300

full-time adult students = 20

full-time homemakers = 30

people working full time for pay = 420

people working part time for pay = 120

people not working but seeking employment = 60

people not working but have given up seeking employment = 50

a. Calculate the labour force participation rate.

b. Calculate the unemployment rate.

c. In the above list, identify the discouraged worker category

d. State True or False: In presence of discouraged workers, the unemployment rate reported in part b of your answer is an understatement of the true unemployment rate. To support your answer, include the discouraged workers in your unemployment rate calculation and compare the result with part b answer.