The decline in the measured unemployment rate that results when people who want to work, but who cannot find work, drop out of the ranks of the unemployed and the labor force is the

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The situation described in the question is known as the discouraged-worker effect, where individuals who want to work but have given up actively seeking employment are no longer counted as part of the labor force or unemployed. This situation can result in a decline in the measured unemployment rate, even though there is still a significant number of individuals who are not employed and want to work.

The Decline in the Measured Unemployment Rate That Results When