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MMLU / What does the presence of discouraged workers do to the measurement of the…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

What does the presence of discouraged workers do to the measurement of the unemployment rate?

choices

  1. Discouraged workers are counted as "out of the labor force" thus the unemployment rate is understated making the economy look stronger than it is.
  2. Discouraged workers are counted as "out of the labor force" thus the unemployment rate is understated making the economy look weaker than it is.
  3. Discouraged workers are not surveyed so there is no impact on the unemployment rate.
  4. Discouraged workers are counted as "unemployed" thus the unemployment rate is understated making the economy look stronger than it is.

subject

high_school_macroeconomics

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Source and history

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