An increase in the number of discouraged workers will cause the:
A) unemployment rate to decrease and the labor force to decrease.
B) unemployment rate to increase and the labor force to increase.
C) unemployment rate to decrease and the labor force to increase.
D) unemployment rate to increase and the labor force to decrease.

Question

Quizplus · Accepted Answer

Discouraged workers are not counted as part of the labor force or as unemployed, so when their number increases, the labor force decreases and the unemployment rate decreases because these individuals are no longer seeking work.

An Increase in the Number of Discouraged Workers Will Cause