In calculating the unemployment rate, "discouraged" workers who are not actively seeking employment are
A) excluded from the labor force.
B) included as part of the unemployed.
C) treated the same as part-time workers.
D) used to determine the size of the labor force.

Question

Quizplus · Accepted Answer

Discouraged workers who are not actively seeking employment are not considered as part of the labor force, and therefore they are not included in the calculation of the unemployment rate. This is because the unemployment rate only counts individuals who are part of the labor force, which consists of people who are either employed or actively seeking employment. Discouraged workers are not actively seeking employment, so they are not part of the labor force and are excluded from the unemployment rate calculation.

In Calculating the Unemployment Rate, "Discouraged" Workers Who Are Not