According to the discouraged worker effect, the official unemployment rate in bad times always understates the...

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Economics

According to the discouraged worker effect, the officialunemployment rate in bad times always understates the realsituation. Provide a short answer explaining why that is thecase.

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The official unemployment rate does not include discouraged workers These are the adults who have been looking for jobs in the past 12 months at some point but not in the four weeks before their monthly household survey is conducted by the Bureau of Labor Statistics BLS That separates them is that they are said to be discouraged    See Answer
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