Calculation of the unemployment rate

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The unemployment rate is, along with GDP and inflation, one of the major economic variables used to assess the health of the economy. However, many critics point to shortcomings in the calculation and overall interpretation of the unemployment rate. What are discouraged workers? Are such workers included in the calculation of the unemployment rate?

How would excluding such workers from the labor force affect the usefulness of the unemployment rate in measuring economic health?

Reference no: EM131097157

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