In an expansion, typically
A)unemployment increases.
B)the employment rate decreases.
C)the number of discouraged searchers increases.
D)employment decreases.
E)the labour force participation rate increases.

Question

Quizplus · Accepted Answer

In an expansion, the economy is growing and businesses are expanding. This usually leads to an increase in job opportunities and a decrease in unemployment. As more job opportunities become available, people who may have stopped looking for work (discouraged searchers) may re-enter the labor force in search of employment. This increase in labor force participation ultimately leads to a decrease in the unemployment rate. Therefore, the labor force participation rate increases during an expansion.

In an Expansion, Typically