Suppose that some people report themselves as unemployed when,in fact,they are working in the underground economy.If these persons were counted as employed,then
A) both the unemployment rate and labor-force participation rate would be higher.
B) both the unemployment rate and labor-force participation rate would be lower.
C) the unemployment rate would be higher,and the labor-force participation rate would be higher.
D) the unemployment rate would be lower,and the labor-force participation rate would be unaffected.
Correct Answer:
Verified
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