The Unemployment Rate Will Overstate the True Amount of Unemployment

Multiple Choice

The unemployment rate will overstate the true amount of unemployment if:

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