The unemployment rate does not reflect the true extent of the unemployment problem.Which of the following groups is not counted as unemployed in the official unemployment statistics?
A)The underemployed and the cyclically unemployed
B)The underemployed and discouraged workers
C)Discouraged workers and the frictionally unemployed
D)The frictionally unemployed and the structurally unemployed
E)The cyclically unemployed and the frictionally unemployed

Question

Quizplus · Accepted Answer

The underemployed are counted as employed in the official unemployment statistics, but their employment does not reflect their skill level or desired number of hours worked. Discouraged workers are also not counted as unemployed because they have given up on finding employment and have stopped looking for work. The other groups listed (cyclically, frictionally, and structurally unemployed) are all counted as unemployed in official statistics.

The Unemployment Rate Does Not Reflect the True Extent of the Unemployment