ECON 2400 Lecture Notes - Variable Cost, Procyclical And Countercyclical, Homo Economicus
Document Summary
Answers to sample midterm: the unemployment numbers include those who were not employed, wanted a job im- mediately, actively searched and could not nd an acceptable job. There are at least two reasons that the unemployment rate (unemployed as a share of the labour force), as calculated by statistics canada, might underestimate the true status of unemployment in canada. First, one is considered employed whether they work full-time or part-time. However, some of the part-time workers might have wanted full-time work but were un- able to nd such work - as a result this group of individuals would be underemployed as they are not working the hours they want. Second, the unemployment numbers, as well as the labour force numbers, do not include the group of discouraged workers. These are individuals who wanted a job immediately but had not been looking because they thought they could not nd a job.
