During recessions, the number of discouraged workers ________ and this ________ the unemployment rate.
A) falls; reduces
B) decreases; increases
C) increases; reduces
D) increases; increases

Question

Quizplus · Accepted Answer

During recessions, the number of discouraged workers who have given up looking for work increases, which reduces the labor force participation rate and makes the unemployment rate appear lower than it actually is. This is because discouraged workers are no longer counted as unemployed as they are not actively seeking employment.

During Recessions, the Number of Discouraged Workers ________ and This