If the people who take early retirement are not counted in the working- age population, then
A) the unemployment rate would be lower.
B) the labor force participation rate would be higher.
C) the labor force participation rate would be less.
D) the unemployment rate would be higher.

Question

Quizplus · Accepted Answer

If those who take early retirement are not counted in the working-age population, the labor force participation rate would be higher because the total number of people in the labor force would be reduced, but the number of people counted as working-age would remain the same. This assumes that people who take early retirement would not have been actively seeking employment at the time of measurement, so they would not have been counted as unemployed.

If the People Who Take Early Retirement Are Not Counted