Question

The presence of discouraged workers reduces the size of the labour force, but does not affect the unemployment rate because why? 

          The presence of discouraged workers reduces the size of the labour force, but does not affect the unemployment rate because why?

Added by Dillon P.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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The presence of discouraged workers reduces the size of the labour force, but does not affect the unemployment rate because why?
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Transcript

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00:01 Hello, so we were asked to explain how it's possible for the number of workers employed to decrease while the unemployment rate decreases.
00:06 Well, this is possible again for the workers employed to decrease while the unemployment rate decreases if the size of the labor force, so if of the labor force also decreases...
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