Which labor market statistic tends rise during recessions and fall during expansions?
A) the employment-to-population ratio
B) the unemployment rate
C) the labor-force participation rate
D) aggregate hours

Question

Quizplus · Accepted Answer

The unemployment rate tends to rise during recessions as employers are less likely to hire new workers and may even lay off existing employees. Conversely, the unemployment rate tends to fall during economic expansions as businesses increase their hiring and opportunities for employment become more abundant.

Which Labor Market Statistic Tends Rise During Recessions and Fall