The table below shows economic information for a hypothetical economy with a flexible exchange rate.

2020 2021 CPI 100 105 Labour force ('000) 62000 61850 Full-time employed ('000) 5640 6200 Part-time employed ('000) 45240 46935 Net foreign debt ($ billion) 900 1000 Net foreign liabilities ($ billion) 1050 1053

a) With reference to the table, calculate the unemployment rate in 2020 and 2021. Show all working calculations. b) In the table above, part of the population is part time employed. Explain the concept of underemployment.

c) What possible solutions can address underemployment in an economy?