When you include discouraged workers and unemployed workers in calculations of the unemployment rate
A) this alternate measure is much lower than the official unemployment rate.
B) the difference between this alternate measure and the official unemployment rate increases significantly during economic expansions.
C) this alternate measure is the same as the official unemployment rate.
D) this alternate measure is much higher than the official unemployment rate.
E) this alternate measure is not useful in studying the macroeconomy.

Question

Quizplus · Accepted Answer

Including discouraged workers and unemployed workers who have given up looking for work in calculations of the unemployment rate leads to a higher unemployment rate than the official unemployment rate, as it reflects a larger number of individuals who are not currently employed but are willing and able to work.

When You Include Discouraged Workers and Unemployed Workers in Calculations