The Bureau of Labor Statistics does not count discouraged workers as unemployed. Suppose discouraged workers were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change
What will be an ideal response?
Both the unemployment rate and the labor force participation rate would increase. The number of unemployed would rise, as would the labor force. The unemployment rate would rise because adding the same number to the numerator and the denominator of a fraction that is less than one increases the value of the fraction. The labor force participation rate would rise because the labor force increases with no change in the working-age population.
You might also like to view...
What do you believe is one of the chief criticisms of the Coase Theorem that render it useless in real-world situations
What will be an ideal response?
Suppose that the Zubians can produce 1000 pounds of flour per hours, or catch 500 pounds of fish per hour. In contrast, the Zirconians can produce 1800 pounds of flour per hour, or catch 300 pounds of fish per hours. What is the comparative advantage of the Zubians?
a. Flour. b. Fish. c. Neither flour nor fish. d. Both flour and fish.