Question

Classical economists contend that official measures of unemployment: Multiple Choice understate the problem due to the existence of discouraged workers. overstate the problem because most unemployment is voluntary. understate the problem due to involuntary part-time employment. overstate the problem because most unemployment is cyclical.

Answer 1

Answer: overstate the problem because most unemployment is voluntary.

Explanation:

Unemployment is a term that is used to refer to individuals who are looking for job but can not find a job.

Classical economists contend that official measures of unemployment

overstate the problem because most unemployment is voluntary.

According to the Classical economists, there is increase in employment because those seeking employment do not want to work for lower wages but will rather wait for high paying jobs and this therefore leads to overstating of the unemployment rate.