Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed.Some people who want to find work will be counted as out of the labor force.
A)Both the first and the second fact tend to make the reported unemployment rate lower than otherwise.
B)Both the first and the second fact tend to make the reported unemployment rate higher than otherwise.
C)The first fact tends to make the reported unemployment rate higher than otherwise,while the second fact tends to make the reported unemployment rate lower than otherwise.
D)The first fact tends to make the reported unemployment rate lower than otherwise,while the second fact tends to make the reported unemployment rate higher than otherwise.

Question

Quizplus · Accepted Answer

The first fact increases the unemployment count by including those not actively seeking work, inflating the rate. The second fact excludes job seekers from the labor force, reducing the unemployment count and lowering the rate.

Some People Who Are Employed or Who Are Not Making