If a large number of individuals file unemployment claims while working in the underground economy:
a. the unemployment rate overstates the level of unemployment
b. the unemployment rate understates the level of unemployment.
c. the accuracy of the unemployment rate is not affected.
d. discouraged worker statistics will underestimate the true state of frustration by job seekers.
a
Economics
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When the marginal propensity to consume (MPC) increases
A) the average propensity to save remains unchanged. B) the multiplier remains unchanged. C) the multiplier decreases. D) the multiplier increases.
Economics
If the duration of unemployment in a country increases from 16 weeks to 18 weeks, then
A) the unemployment rate will decrease. B) the unemployment rate will increase. C) the size of the labor force will increase. D) the size of the labor force will decrease.
Economics