Asked by Jahsiah Colon on Jun 06, 2024

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The unemployment rate will decrease whenever there is a(n) _____.

A) increase in the number of persons classified as unemployed
B) decrease in the number of unemployed persons relative to the size of the labor force
C) decrease in the size of the population and no change in the number of persons classified as employed
D) reduction in the size of the labor force
E) decrease in the number of unemployed persons and no change the population

Unemployment Rate Decrease

A reduction in the percentage of the labor force that is unemployed and actively seeking employment.

Labor Force Size

The total number of people aged 16 and over who are either employed or actively seeking employment.

Classified Unemployed

Classified unemployed refers to individuals who are without a job and have been categorized based on certain criteria, such as duration of unemployment or their reason for unemployment.

  • Determine the unemployment percentage in various situations.
  • Determine the elements that affect fluctuations in the unemployment rate.
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CS
Chisha SulweJun 09, 2024
Final Answer :
B
Explanation :
The unemployment rate is calculated by dividing the number of unemployed persons by the size of the labor force. So, when the number of unemployed persons decreases (while the size of the labor force remains constant), the unemployment rate will decrease as well. Option A is incorrect because an increase in the number of persons classified as unemployed would increase the unemployment rate. Option C is incorrect because a decrease in the size of the population does not necessarily affect the unemployment rate. Option D is incorrect because a reduction in the size of the labor force would decrease both the number of employed and unemployed persons, potentially leaving the unemployment rate unchanged. Option E is incorrect because it doesn't take into account the size of the labor force, which is necessary for calculating the unemployment rate.