Which of the following statements is false?
A) Discouraged workers are not considered as unemployed workers.
B) Higher is the number of discouraged workers, higher is the unemployment rate.
C) Participation rate will decline if the growth of labour force is less than the growth of population above 15 years of age.
D) Labour force equals employed plus unemployed workers.

Question

Quizplus · Accepted Answer

Discouraged workers, by definition, are not actively seeking employment and therefore are not counted in the unemployment rate. Thus, an increase in the number of discouraged workers does not directly increase the unemployment rate.

Which of the Following Statements Is False