Suppose the Official Rate of Unemployment Reported by Statistics Canada

question 85

Multiple Choice

Suppose the official rate of unemployment reported by Statistics Canada is 7.2%.One reason this is likely to be an understatement of the amount of "true" unemployment is that

• A)the official rate is a measure of gross flows into and out of unemployment rather than net flows.
• B)discouraged workers who have given up searching for a job,but would take one if offered,are not included.
• C)the official rate is a measure of net flows into and out of unemployment rather than gross flows.
• D)Statistics Canada does not have a good measure of the numbers of people entering the labour force.
• E)seasonal workers are not included at all in the official data.

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