The Presence of Discouraged Workers

Multiple Choice

The presence of discouraged workers:

A) increases the size of the labour force, but does not affect the unemployment rate
B) reduces the size of the labour force, but does not affect the unemployment rate
C) may cause the official unemployment rate to understate the level of unemployment
D) may cause the official unemployment rate to overstate the level of unemployment
E) increases both the size of the labour force and the unemployment rate