The official unemployment rate reported by the government may tend to understate

Question

The official unemployment rate reported by the government may tend to understate the amount of unemployment includes discouraged workers in the calculations. excludes discouraged workers who are not actively seeking employment. includes people over 65 who aren't retired in the calculations excludes teenagers from the calculations. In general, for the U.S. economy, the relation between unemployment and economic growth is: positive. direct. neutral. negative. An example of structural unemployment is a(n): autoworker who is temporary laid off from an automobile company because of a decline in sales. geologist who is permanently laid from an oil company because of an increase in wages won by labor unions. worker at a fast-food restaurant who quits work and attends college. real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Explanation / Answer

a. The official unemployment rate reported by the government may tend to understate the amount of unemployment by:excluding discouraged workers who are not actively seeking employment. The official unemployment rate does not included discouraged wokers , that is why the rate is understated.

b. The relation between unemployment and growth is negative. This is because when there is economic growth, output of the economy increaseds. When the output increased, employment of labor increases and unemployment decreases.

c. An example of structural unemployment is the unemployment faced by workers faced by workers who enter the labor force for the first time. Structural unemployment arises when there is a mismatch between the skills of the workers and skills required for a particular job.

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