📚 Learning Guide
Unemployment and Labor Force Dynamics
hard

Discouraged workers: Unemployment rate :: Labor force participation: ?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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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