When the Number of Discouraged Workers Increases, the U3 Unemployment

question 82

Multiple Choice

When the number of discouraged workers increases, the U3 unemployment rate will _____, giving a false impression that the economy is:

• A) drop; healthier.
• B) rise; weaker.
• C) rise; healthier.
• D) drop; weaker.

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Definitions:

Cash Basis

A method of accounting where transactions are recorded when cash is either received or paid.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investment securities, reflected in a company's cash flow statement.

Direct Method

A cost allocation approach directly assigning service department costs to producing departments without any intermediate steps.

Sales Adjusted

The revision of sales figures to account for returns, allowances for damaged goods, and discounts given.