Suppose that 1000 people were surveyed , and of those surveyed 500 were working full time . Of 500 not working 200 were full-time college students, 100 were retired ,50 under sixteen years old , 30 had stopped looking for a job because they were discouraged , and 120 were actively looking for work.
1) What is the working age population in the 1000 surveyed ?
2) How many of the 1000 surveyed are in the labor force?
3) What is the labor force participation rate ?
4) What is the unemployment rate ?
5) Does the unemployment rate overstate or understate the true unemployment rate? Justify your answer.