The fact of discouraged workers tends to cause the official unemployment rate to understate the actual rate.

Question

Quizplus · Accepted Answer

Discouraged workers are those who have given up on finding a job and have stopped actively seeking employment. Since they are no longer counted as unemployed, the official unemployment rate does not reflect their situation. Therefore, the actual rate of unemployment is higher than the official rate, making option A true.

The Fact of Discouraged Workers Tends to Cause the Official