Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Economic growth
B
Employment rate
C
Underemployment rate
D
Inflation rate
Understanding the Answer
Let's break down why this is correct
Answer
The relationship between discouraged workers and the unemployment rate is that discouraged workers are people who want to work but have stopped looking for jobs because they believe there are no jobs available for them. This means they are not counted in the unemployment rate, which only includes those actively seeking work. Similarly, labor force participation refers to the percentage of the working-age population that is either employed or actively looking for work. Just like discouraged workers are not part of the unemployment rate, those who are not participating in the labor force, such as retirees or students, are not counted in the labor force participation rate. For example, if a group of people wants to work but has given up searching due to a tough job market, they will lower the unemployment rate and also affect the overall labor force participation rate.
Detailed Explanation
The employment rate shows how many people are working compared to those who could work. Other options are incorrect because Some might think economic growth is linked to labor force participation; People might confuse underemployment with labor force participation.
Key Concepts
Discouraged workers and unemployment rate
Labor force participation and employment rate
Macroeconomic indicators
Topic
Unemployment and Labor Force Dynamics
Difficulty
hard level question
Cognitive Level
understand
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