Author Question: Why might the official measure of civilian unemployment in the U.S. be an understatement of actual ... (Read 37 times)

olgavictoria · **on:** Jun 30, 2018

Why might the official measure of civilian unemployment in the U.S. be an understatement of actual unemployment?
a. Because some workers become discouraged and no longer are actively seeking work. Thus they are not officially counted in the labor force, and consequently are not officially unemployed.
b. Because the official measure of civilian unemployment fails to account for very high levels of unemployment among active-duty military personnel.
c. Because the statistics count part-time employment as being no different from full-time employment, even though many part-time workers would prefer to be fully employed.
d. Both a. and c. above are correct.

Question 2

Cost-push inflation is caused by a leftward shift of the aggregate demand curve.
a. True
b. False
Indicate whether the statement is true or false