Exclusion of which of the following tends to understate the true level of unemployment in the economy?
A) Children.
B) Retired persons.
C) Students.
D) Discouraged workers.

Question

Quizplus · Accepted Answer

Discouraged workers, who have given up looking for work, are not counted as unemployed in the official unemployment rate calculation. However, their exclusion tends to understate the true level of unemployment in the economy.

Exclusion of Which of the Following Tends to Understate the True