Official unemployment statistics:
A) understate unemployment because individuals receiving unemployment compensation are counted as employed.
B) understate unemployment because discouraged workers are not counted as unemployed.
C) include cyclical and structural unemployment but not frictional unemployment.
D) overstate unemployment because workers who are involuntarily working part time are counted as being employed.

Question

Quizplus · Accepted Answer

Discouraged workers are individuals who have given up on actively seeking employment and are therefore not included in the official unemployment statistics. This understates the true level of unemployment in the economy. The other answer choices are either incorrect or incomplete.

Official Unemployment Statistics