Because of the _____,the unemployment rate as measured by the Bureau of Labor Statistics tends to understate the extent of unemployment during a recession.
A)counter-cyclical labor force participation rate
B)added-worker effect
C)decline in the average workweek
D)discouraged-worker effect

Question

Quizplus · Accepted Answer

The discouraged-worker effect refers to individuals who are no longer classified as unemployed because they have given up looking for work. This effect tends to increase during a recession when job opportunities are scarce, and makes the unemployment rate understated.

Because of the _____,The Unemployment Rate as Measured by the Bureau