Classifying discouraged workers as unemployed would
A) increase the unemployment rate.
B) decrease the unemployment rate.
C) not change the unemployment rate.
D) have an indeterminate impact on the unemployment rate.

Question

Quizplus · Accepted Answer

Discouraged workers are currently not counted in the labor force and are therefore not included in the unemployment rate calculation. If they were reclassified as unemployed, they would be added to the labor force and increase the number of unemployed individuals, thus increasing the unemployment rate.

Classifying Discouraged Workers as Unemployed Would