Asked by Morgan Burroughs on Apr 27, 2024
Verified
Suppose there are 8 million unemployed workers seeking jobs.After a period of time,2 million of them become discouraged over their job prospects and cease to look for work.As a result of this,the official unemployment rate would
A) increase in the short run but eventually decline.
B) increase.
C) decline.
D) be unchangeD.
Discouraged Workers
Individuals who are not actively seeking work because they believe no jobs are available for them or there are no jobs for which they would qualify.
Unemployment Rate
The rate of unemployment among people actively looking for work in the labor force.
- Analyze the impact of discouraged workers on unemployment statistics.
Verified Answer
JK
Jacob KunzeMay 03, 2024
Final Answer :
C
Explanation :
The official unemployment rate only includes individuals who are actively seeking employment. When 2 million individuals cease to look for work, they are no longer counted as unemployed and are therefore not factored into the unemployment rate. As a result, the unemployment rate would decline.
Learning Objectives
- Analyze the impact of discouraged workers on unemployment statistics.