Which of the following best defines unemployment in macroeconomic statistics?

• A. All adults who do not currently have a job, including retirees and full-time students
• B. People who have a job but are working fewer hours than they would like
• C. People without a job who are available to work and have actively looked for work in the recent past
• D. People who are not working and are not looking for work because they believe no jobs are available

Answer: (C)

Verified step by step guidance

1. Understand that unemployment in macroeconomic statistics is specifically defined to capture those who are actively seeking work but currently do not have a job.
2. Recognize that not all adults without jobs are considered unemployed; for example, retirees and full-time students are not counted as unemployed because they are not actively looking for work.
3. Note that people who have a job but want to work more hours are classified as underemployed, not unemployed.
4. Identify that those who are not working and have stopped looking for work because they believe no jobs are available are considered discouraged workers and are not counted as unemployed.
5. Conclude that the best definition of unemployment is: people without a job who are available to work and have actively looked for work in the recent past.