The Unemployment Rate Will Understate the True Amount of Unemployment

question 54

Multiple Choice

The unemployment rate will understate the true amount of unemployment if

• A)the unemployment rate is rising.
• B)crime,divorce,and social unrest are all positively correlated with unemployment.
• C)the official unemployment figure excludes discouraged workers who have stopped actively looking for work.
• D)the labour force has grown more rapidly than output.
• E)the actual unemployment rate is greater than the natural rate of unemployment.

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Definitions:

Net Income

The amount of money a company earns after deducting all its expenses, taxes, and costs from its total revenue.

Capital Balances

The amount of money that owners have invested in a company plus any retained earnings or minus any losses.

Net Income

Net Income is the profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Profit And Loss Ratio

An agreed upon ratio used to divide earnings or losses of a partnership.