If the number of discouraged searchers decreases because many of them start to look for work, everything else remaining the same, then the
A)unemployment rate increases.
B)labour force participation rate decreases.
C)labour force participation rate increases.
D)employment rate decreases.
E)both A and C

Question

Quizplus · Accepted Answer

When discouraged searchers start looking for work, they are counted as part of the labor force, which increases the labor force participation rate (C). Since they are not employed yet, they are considered unemployed, which increases the unemployment rate (A).

If the Number of Discouraged Searchers Decreases Because Many of Them