The Presence of Discouraged Workers

question 30

Multiple Choice

The presence of discouraged workers:

• A)increases the size of the labour force, but does not affect the unemployment rate
• B)reduces the size of the labour force, but does not affect the unemployment rate
• C)may cause the official unemployment rate to understate the level of unemployment
• D)may cause the official unemployment rate to overstate the level of unemployment
• E)increases both the size of the labour force and the unemployment rate