2. Discouraged searchers and underemployed workers By keeping track of discouraged workers and underemployed workers, Statistics Canada gets a clearer picture of the true employment situation than if it looked at only the number of unemployed workers. Which of the following statements correctly describe discouraged searchers? Check all that apply. [:I They have not looked for work during the past four weeks. D They would like to have jobs. [:I They are full-time workers who would like to work only part-time. D They are parttime workers who want to work fulltime. Consider a hypothetical economy in which the labour force consists of 100 people. Of those, 85 people are employed fulllime and 15 people are unemployed. The government of this economy follows the same conventions as Statistics Canada in computing its employment gures. The unemployment rate is simply the number of unemployed people divided by the number of people in the labour force. Initially, then, the unemployment rate is (151'100) x 100% = 15.0%. Suppose a reduction in foreign demand for this economy's products causes an economic recessiona prolonged period of declining output. The following table offers two different possible scenarios resulting from the recession. Calculate the unemployment rate associated with each scenario. Unemployment Rate Scenario Firms reduce work hours by 25%. The number of A: underemployed workers rises as rms respond to the reduction in the demand for their products by reducing the hours of each employed person from 40 to 30 hours per week. Scenario Firms reduce employment by 25%. The number of B: unemployed workers rises as rms respond to the reduction in the demand for their products by laying off 21 previously employed workers. The unemployment rate in scenario A the true extent of underemployment in the economy, because Statistits Canada counts parttime workers as employed