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The Unemployment Rate Will Understate the True Amount of Unemployment

Question 54

Multiple Choice

The unemployment rate will understate the true amount of unemployment if


A) the unemployment rate is rising.
B) crime,divorce,and social unrest are all positively correlated with unemployment.
C) the official unemployment figure excludes discouraged workers who have stopped actively looking for work.
D) the labour force has grown more rapidly than output.
E) the actual unemployment rate is greater than the natural rate of unemployment.

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