Would we expect to see more or fewer discouraged workers when the official unemployment rate rises?...

Would we expect to see more or fewer discouraged workers when the official unemployment rate rises? Why?

If we included discouraged workers, would the unemployment rate be larger? Why or why not?

Solutions

Expert Solution

When the official unemployment rate rises, it implies that there are fewer discouraged workers. The discouraged workers are not included in the calculation of the unemployment rate. when there are few discouraged workers, automatically, the official unemployment rate figure rises.

If the discouraged workers are included in the calculation of the unemployment rate, the unemployment rate shall rise.

Rahul Sunny answered 1 year ago

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