Question

The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy.Excluding discouraged workers from the official unemployment rate may cause the official rate to ____________(overstate/understate) the true extent of underemployment.

Answer 1

Answer:

Understate

Explanation:

The official unemployment rate and the U-4 measure of labour under-utilization are two different measures of joblessness in the economy.

Excluding discouraged workers from the official unemployment rate may cause the official rate to understate the true extent of underemployment.