By classifying discouraged workers as out of the labor force, the unemployment rate is ________ if they were considered as employed.
A) higher than
B) lower than
C) the same as
D) any of the above can be correct

Question

Quizplus · Accepted Answer

Discouraged workers are not counted as part of the labor force because they are not actively seeking employment. If they were considered employed, the unemployment rate would be lower because the number of employed people would increase while the number of people in the labor force remained the same.

By Classifying Discouraged Workers as Out of the Labor Force