Suppose there are 10 million part-time workers and 90 million full-time workers in an economy.Five million of the part-time workers switch to full-time work.We can conclude that:
A)the official unemployment rate will fall.
B)the official unemployment rate will rise.
C)the official unemployment rate will remain unchanged.
D)the size of the labour force will increase.

Question

Quizplus · Accepted Answer

The switch of 5 million part-time workers to full-time work will increase the number of employed individuals, but it will also increase the size of the labor force, as more people will be actively seeking work. As a result, the unemployment rate (which is calculated as the number of unemployed individuals divided by the labor force) will remain unchanged.

Suppose There Are 10 Million Part-Time Workers and 90 Million