One criticism of the unemployment rate is that it
A) does not include the number of discouraged workers as unemployed.
B) does not include people who are not working and are not looking for work.
C) counts a new entrant that is actively seeking work as unemployed.
D) is a stock measure.

Question

Quizplus · Accepted Answer

The unemployment rate only considers those individuals who are actively seeking work and are currently unemployed. It excludes those who have stopped looking for work, also known as discouraged workers. This means that the unemployment rate may underestimate the true amount of unemployment in an economy.

One Criticism of the Unemployment Rate Is That It