# 2. Discouraged workersWhich of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check allthat apply.O They have not looked for a job in 4 weeks (or longer), but they would like a job and are available for work.O They have given up on looking for a job.O They are employed workers who want to earn higher wages.O They are full-time workers who would like to work only part-time.The following table contains U.S. employment information from August 2019.Civilian PopulationEmployedUnemployedDiscouraged(Persons)(Persons 16 years old and over)(Persons)(Persons)6,044,000259,432,000157,878,000467,000The Bureau of Labor Statistics has several measures of joblessness in addition to the official unemployment rate. One alternative is the U-4 measureof labor underutilization, which is calculated as follows:Unemployed+DiscouragedLabor Force + DiscouragedU-4100 x The following table contains U.S. employment information from August 2019.Civilian PopulationDiscouragedEmployedUnemployed(Persons 16 years old and over)(Persons)(Persons)(Persons)259,432,000157,878,0006,044,000467,000The Bureau of Labor Statistics has several measures of joblessness in addition to the official unemployment rate. One alternative is the U-4 measureof labor underutilization, which is calculated as follows:Unemployed+DiscouragedLabor Force + DiscouragedU-4= 100 xFill in the following table by calculating the official unemployment rate and the U-4 measure of labor underutilization.Official Unemployment RateU-4 Measure of Labor Underutilization(Percent)(Percent)The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy.If the Bureau of Labor Statistics were to include discouraged workers in the official unemployment rate, the reported unemployment rate would

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Step 1

A discouraged worker or labor is a person who can work and eligible for employment but is unemployed currently and has not attempted to find a job. So, basically the people who gave up on looking for jobs due to many rejections, stress, negative emotions etc.

The discouraged labor is not employed- so both c and d are incorrect.

They are the labors not in the force and who want and are available for a job and have looked for jobs sometime in the past 12 months, but are not looking for jobs currently because they feel that there are no jobs available or there are none for which they would qualify.

a)Thus, a is correct as they have not looked for a job in four weeks, but they would like a job and are available for work.

b)They have given up on looking for a job is the correct option.

Step 2

Unemployment rate can be calculated be: Unemployed people / labor force

labor force is Employed people + unemployed people

Discouraged people are not included in labor force as they are not  searching for a job actively and therefore, they are considered as nonparticipants in the labor market.

Unemployment rate = [6044000 / (157878000 + 6044000)] * 100 = 3.69%

Step 3

As we know,

U4 = [(Unemployed + Discouraged) / (Employed + unemployed + discouraged)] * 100

U4  = ...

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