Two results of underemployment are that the U3 unemployment rate _____ the unfulfilled desire to work and that national output is:

Question

Quizplus · Accepted Answer

Underemployment occurs when workers are employed below their skill level or work fewer hours than they would prefer. This situation leads to the U3 unemployment rate underestimating the true extent of employment issues, as it only counts those actively seeking work and not those who are underemployed. Consequently, national output is lower than it could be because not all workers are utilized to their full potential, leading to less overall productivity.

Two Results of Underemployment Are That the U3 Unemployment Rate