The difference between the official unemployment rate and the alternate measure of unemployment that includes discouraged workers and underemployed workers
A) equals zero when there is no cyclical unemployment.
B) shows that there are no shortcomings with the official unemployment rate.
C) grows when the economy enters an expansion.
D) shows short-term and long-term unemployment spells.
E) grows when the economy enters a recession.

Question

Quizplus · Accepted Answer

The alternate measure of unemployment, which includes discouraged and underemployed workers, typically grows during a recession because more people become discouraged or underemployed when jobs are scarce.

The Difference Between the Official Unemployment Rate and the Alternate