Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor changes in this economy. Scenario
Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor changes in this economy. Scenario Unemployment Rate A: Firms reduce work hours by 20%. The number of involuntary part-time workers rises as firms respond to the reduction in the demand for their products by reducing the hours of each employed person from 40 to 32 hours per week. B: Firms reduce employment by 20%. The number of unemployed workers rises as firms respond to the reduction in the demand for their products by laying off 23 previously employed workers. True or False: The unemployment rate for scenario A in the previous table overstates the true extent of underemployment in the economy BLS counts part-time workers as employed
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