If There Are Discouraged Workers

question 48

Multiple Choice

If there are discouraged workers:

• A)​they are included in the official count of the unemployed.
• B)​the unemployment rate will tend to overstate the true level of unemployment.
• C)​the unemployment rate will tend to understate the true level of unemployment.
• D)​they are considered part of the labor force.

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Definitions:

Laspeyres Price Index

The Laspeyres Price Index measures the change in the price of a basket of goods and services over time, using the quantities of the base period.

Base Year

A specific year chosen as a point of reference or benchmark for economic or financial calculations, such as indexing or comparing prices.

Current Year

The ongoing calendar year during which an event or measurement is taking place.

Laspeyres Price Index

An index that measures the change in the price of a basket of goods and services based on the quantities purchased in a base period.