Asked by Aboubaker Eltoum on Mar 10, 2024
Verified
If the number of unemployed stays the same and the number of people in the labor force declines
A) The unemployment rate will rise.
B) the unemployment rate will fall.
C) the unemployment rate will stay the same.
D) There is not enough information to determine what will happen to the unemployment rate.
Unemployment Rate
The percentage of people in the labor force who are not currently employed but are seeking work.
Labor Force
The total number of people who are eligible and willing to work, including both employed and unemployed individuals.
- Compute changes in the unemployment rate and interpret its implications.
Verified Answer
MD
Maysam DaghestaniMar 10, 2024
Final Answer :
A
Explanation :
If the number of unemployed stays the same and the number of people in the labor force declines, the labor force participation rate decreases. This means that there are fewer people actively looking for work, which can result in a decrease in the number of employed individuals as well. With no change in the number of unemployed, the unemployment rate will increase due to the decrease in the labor force.
Learning Objectives
- Compute changes in the unemployment rate and interpret its implications.
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