Holding all else constant,if people who are currently discouraged workers decide to start looking for jobs again,you will see
A) an increase in the unemployment rate.
B) a decrease in the unemployment 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 discouraged workers start looking for jobs again, they are reclassified from being out of the labor force to being unemployed, which increases the unemployment rate.

Holding All Else Constant,if People Who Are Currently Discouraged Workers