Which of the following statements is incorrect?
a. The unemployment rate overstates the labor market's true level of economic hardship because many families have more than one income earner.
b. It is mathematically and economically impossible for the unemployment rate and employment rate to rise at the same time.
c. By reporting that they are actively seeking work when they are not, individuals cause the unemployment rate to rise above the true level of hardship.
d. Because part-time workers are counted as fully employed the unemployment rate understates the true level of economic hardship.
Question 2
A sign that Country A is under pressure to appreciate its currency is its:
a. Current account is in surplus.
b. Overall balance is in surplus.
c. Capital account is in surplus.
d. Overall balance is in deficit.
e. Reserves account is in surplus (i.e., positive).
Which of the following statements is true of linkage?
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