no handwritten notes By keeping track of discouraged and underemployed workers, Statistics Canada gets a clearer picture of the true employment situation than if itlooked only at the number of unemployed workers.Which of the following statements correctly describe discouraged workers? Check all that apply.They are full-time workers who would like to work only part-time.They are available for work.They are not in the labour force.They have not looked for work during the past four weeks.Consider a hypothetical economy in which the labour force consists of 100 people. Of those, 90 people are employed full-time and 10 people areunemployed. The government of this economy follows the same conventions as Statistics Canada in computing its employment figures. Theunemployment rate is calculated as the number of unemployed people divided by the number of people in the labour force:Unemployment Rate =Number of Unemployed PeopleLabour Forcex 10010010%Suppose a reduction in foreign demand for this economy's products causes an economic recession-a prolonged period of declining output. Thefollowing table presents two possible scenarios resulting from the recession.Calculate the unemployment rate associated with each scenario. ScenarioA. Firms reduce work hours by 25%. The number of underemployed workers rises asfirms respond to the reduction in demand for their products by reducing the hours of eachemployed person from 40 to 30 hours per week.B. The number of unemployed workers rises as firms respond to the reduction in demandfor their products by laying off ten previously employed workers.The unemployment rate in scenario Atime workers as employed.Unemployment Rate%▼ the true extent of underemployment in the economy, because Statistics Canada counts part-

we'll analyze statements about discouraged workers and calculate unemployment rates in different…

Scenario A. Firms reduce work hours by 25%. The number of underemployed workers rises as firms respond to the reduction in demand for their products by reducing the hours of each employed person from 40 to 30 hours per week. B. The number of unemployed workers rises as firms respond to the reduction in demand for their products by laying off ten previously employed workers. The unemployment rate in scenario A time workers as employed. Unemployment Rate % the true extent of underemployment in the economy, because Statistics Canada counts part-