True/False. "If discouraged workers are counted as unemployed, then the unemployment rate will rise." Explain your...

True/False. "If discouraged workers are counted as unemployed, then the unemployment rate will rise." Explain your choice.

Expert Solution

The answer to this would be false. In the economics perspective, we see that the discouraged workers are generally the type of workers who are not looking for jobs actively. These people have not been employed or into any kind of job for a very long time and there are several reasons to this. They might have not found their ideal jobs due to shortages or lack of skills. It can also be said that they might have faced biasness while looking for jobs. And due to all these reasons, the workers stop searching for jobs and are termed as discouraged. As they are not willing to be employed anymore, they are not included in the calculation of the rate of unemployment or known to be unemployed. Therefore, the rate of unemployment when calculated, takes into account only the number of labor in force, which means that the discouraged workers are not considered in the calculation and they do not affect the rate of unemployment.

Rahul Sunny answered 1 year ago

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