The effect of _____ is to produce an unemployment rate that understates actual unemployment.
A)the underground economy
B)discouraged workers and underemployment
C)the growth in real GDP
D)institutionalized and retired labor force
E)seasonally unemployed workers

Question

Quizplus · Accepted Answer

Discouraged workers are those who have given up looking for work and are no longer counted in the unemployment rate. Underemployment refers to individuals who are employed but are working part-time when they would prefer to work full-time or are working in jobs that do not fully utilize their skills or education. Both of these factors contribute to an understatement of actual unemployment.

The Effect of _____ Is to Produce an Unemployment Rate