According to the application, as more individuals avail of disability benefits,
A) the unemployment rate increases because they are not part of the labor force.
B) the unemployment rate decreases because they are not part of the labor force.
C) the unemployment rate decreases because they are now considered employed.
D) the unemployment rate increases because they are now considered unemployed.

Question

Quizplus · Accepted Answer

Individuals who avail of disability benefits are not considered part of the labor force and are not counted in the unemployment rate. Therefore, as more people avail of disability benefits, the number of people counted in the labor force decreases, causing the unemployment rate to decrease.

According to the Application, as More Individuals Avail of Disability