Suppose Small Country has 20 civilian residents aged at least 16. 4 are retired, 4 are students, 2 work as clerks the two country stores, 2 work at the country bank, 3 are currently looking for work but have not worked in the last month, 3 are homemakers not looking for work, 1 owns and operates all of the country's businesses, and 1 is in jail.
A. What is the unemployment rate?
B. What is the labor force participation rate?
C. Suppose 2 of the currently unemployed workers become discouraged and stop looking for work. What would be the new unemployment and labor force participation rates?