During recessions, industries such as construction often cut back on employees. The newly unemployed workers may seek

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During recessions, industries such as construction often cut back on employees. The newly unemployed workers may seek jobs for a while and then become discouraged if they do not find new jobs.
a. If workers are seeking jobs, how does the BLS count those workers?
b. If workers have stopped seeking jobs, how does the BLS count those workers?
c. Use this information to explain why, when the economy begins to recover from a recession, the unemployment rate may initially worsen.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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