During a recession,a number of workers have their hours reduced by their employers.All else the same,the unemployment rate will ________ and the labor force participation rate will ________.
A) decrease; increase
B) increase; not change
C) increase; increase
D) not change; not change
E) decrease; not change

Question

Quizplus · Accepted Answer

The unemployment rate will not change because these workers are still employed, albeit with reduced hours. The labor force participation rate will also not change because these workers remain part of the labor force.

During a Recession,a Number of Workers Have Their Hours Reduced