suppose unemployment is very low then it is hard for businesses to find workers and it is easy for workers to
Added by Meghan M.
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Step 1: When unemployment is very low, it means that most people who are able and willing to work are already employed. Show more…
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If many workers become discouraged from looking for jobs, explain how the number of jobs could decline but the unemployment rate could fall at the same time.
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A high unemployment rate tells us that a large percentage of the labor force is unemployed but not why the unemployment rate is high. What unemployment measure tells us if (i) people are searching longer than usual to find a job, (ii) more people are economic part-time workers, or (iii) more unemployed people are job losers?
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