When You Include Discouraged Workers and Unemployed Workers in Calculations

question 130

Multiple Choice

When you include discouraged workers and unemployed workers in calculations of the unemployment rate

• A) the difference between this alternate measure and the official unemployment rate increases significantly during recessions.
• B) the difference between this alternate measure and the official unemployment rate increases significantly during economic expansions.
• C) this alternate measure is much lower than the official unemployment rate.
• D) this alternate measure is the same as the official unemployment rate.
• E) this alternate measure is not useful in studying the macroeconomy.

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Definitions:

Equilibrium Quantity

The quantity of goods or services demanded equals the quantity supplied at the market price.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is not achievable.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time frame.

Tariff

Tariff is a tax imposed on imported goods and services to regulate trade and to increase government revenue.