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 actively seeking employment and are thus not counted in the labor force. If they were considered employed, the unemployment rate would be lower because the number of unemployed individuals would decrease while the labor force size would remain the same.

By Classifying Discouraged Workers as Out of the Labor Force