Suppose there are 6 million unemployed workers actively seeking a job.After a period of time,1,500,000 of these workers become discouraged and no longer look for employment.Ceteris paribus,the unemployment rate will
A)Decrease.
B)Increase.
C)Remain unchanged until the unemployed find a job.
D)Increase initially but decrease when the phantom unemployed receive unemployment benefits.

Question

Quizplus · Accepted Answer

When workers become discouraged and stop looking for employment, they are no longer counted as part of the labor force, which decreases the unemployment rate.

Suppose There Are 6 Million Unemployed Workers Actively Seeking a Job.After