The following information is about a hypothetical economy:

Full-time employed = 80

Part-time employed = 25

Unemployed = 15

Discouraged workers = 5

Members of underground economy = 6

Consumer Price Index = 110

Refer to the above information. If 6 members of the labour force are presently counted as part of the unemployed when in fact they are employed, the official unemployment rate is overstated by:

Multiple Choice

• 2 percentage points.
• 6 percentage points.
• 0 percentage points.
• 7.5 percentage points.