Official Unemployment Statistics Overstate Unemployment Because Discouraged Workers Who Are

question 54

True/False

Official unemployment statistics overstate unemployment because discouraged workers who are not actively seeking work are counted as unemployed.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest payments on outstanding debt.

Creditors

Entities or individuals to whom money is owed by a business or individual for goods or services provided or as a result of a loan.

Present Value

Today's equivalent value of a prospective sum or cash flows expected later, arrived at by applying a certain rate of return.