Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 8: Q 31 (page 215)

Is a decrease in the unemployment rate necessarily a good thing for a nation? Explain.

Short Answer

Expert verified

Unemployment rate depicts percentage of individuals unemployed in total labor force.

Step by step solution

01

Step 1. Definition  

Unemployed people: People who are looking for job but are not able to find it.

02

Step 2. Discouraged workers 

Those workers who are eligible for jobs but have they have stopped looking for job because they might not find suitable options they are looking for.

03

Step 3. Reason 

Increase in unemployment does not always means country is not doing good. Discouraged workers are not considered as unemployed nor they are included in labor force. So despite of bad economic conditions unemployment rate will fall.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What is structural unemployment? Give examples of structural unemployment.

As the baby boomer generation retires, what should happen to wages and employment? Can you show this graphically?

Unemployment rates have been higher in many

European countries in recent decades than in the United States. Is the main reason for this long-term difference in unemployment rates more likely to be cyclical unemployment or the natural rate of unemployment? Explain briefly.

Many college students graduate from college before they have found a job. When graduates begin to look for a

job, they are counted as what category of unemployed?

What happens to the unemployment rate when unemployed workers are reclassified as discouraged workers?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free