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Explain about the term underemployment and unemployment rate.
Discouraged employees are non-working people who are able of working although are not actively in search of a job.
Underemployment:
It is the number of people who work throughout a recession although receive lower wages than they would throughout an expansion because of smaller number of hours employed, lower-paying jobs, or both.
The unemployment rate:
It is the ratio of the number of people unemployed to the whole number of people into the labor force, either recently working or search for jobs.
how does economic theory contribute to managerial decisions?
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