Which of the following statements is true?
A) Discouraged workers are workers who do not like their jobs but stay with them rather than seek new jobs.
B) The number of discouraged workers in the economy decreases as the economy approaches full employment.
C) Discouraged workers cause the reported level of unemployment in the economy to overstate the true level of unemployment.
D) All of the above.

Question

Quizplus · Accepted Answer

Discouraged workers are individuals who are not actively seeking employment due to a belief that no jobs are available for them. As the economy improves and approaches full employment, the number of discouraged workers typically decreases because more job opportunities become apparent, encouraging these individuals to re-enter the job market.

Which of the Following Statements Is True