Eliminatation
Started by
Ashley-Tien
· started 2018-07-10 16:55
· last activity 2018-07-30 00:02
· 1 reply
How do we eliminate C? I thought because people who lost their jobs started their own businesses, that would account for why the number of jobs lost was underestimated. How do we arrive at D?
-
MichelleRod
· 2018-07-30 00:02
Hey @ashleytien thanks for your question
The stimulus tells us that companies report their jobs numbers to the federal government. Recently-fired employees starting their own businesses would not help resolve the discrepancy because those new companies would have to report tot he government just like everyone else, so those jobs would be accounted for. That's why we can eliminate C.
On the other hand, if companies abruptly cease ALL operations, that also means they stop reporting to the government and all the jobs lost by the downfall of that company are not accounted for in the government's numbers
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