What is the discouraged worker effect?
A) A discouraged worker will accept any job offer regardless of the wage.
B) Because a discouraged worker accepts a part-time job when he wants a full-time job, he is considered to still be unemployed.
C) A discouraged worker accepts a part-time job and is therefore counted as being employed.
D) A discouraged worker stops looking for a job but is still counted as being in the labor force.
E) A discouraged worker stops looking for a job and therefore is no longer counted as being in the labor force.
Correct Answer:
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