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How Would the Unemployment Rate and the Labour Force Participation

question 296

Essay

How would the unemployment rate and the labour force participation rate change if discouraged workers were counted as unemployed rather than as out of the labour force? Illustrate this using the formulae for both measurements.


Definitions:

Causal Influence

The effect that one variable, event, or action has in directly causing another.

Research Method

A systematic approach to investigating questions or hypotheses by collecting and analyzing data.

Experiment

A method of research in the sciences and social sciences where variables are manipulated to observe the effects on some behavior or mental process.

Longitudinal Design

A research design that involves repeated observations or measurements of the same variables over extended periods of time.

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