If the intertemporal substitution hypothesis is correct, then
A. the unemployment rate is always artificially high.
B. discouraged workers will not exist.
C. discouraged workers should be included in the unemployed population because they actually want a job at the going wage.
D. discouraged workers should not be included in the unemployed population because they are optimally choosing more leisure during a time of low wages.
E. the unemployment rate is always artificially low.
Answer: D
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