Holding all else constant,if people who are currently unemployed become discouraged workers,you will see
A) an increase in the unemployment rate.
B) an increase in the labor force participation rate.
C) no effect on the unemployment rate.
D) no effect on the labor force participation rate.
E) a decrease in the labor force participation rate.

Question

Quizplus · Accepted Answer

When people who are currently unemployed become discouraged workers, they stop looking for work and are no longer counted as part of the labor force. This leads to a decrease in the labor force participation rate.

Holding All Else Constant,if People Who Are Currently Unemployed Become