Carla lost her job and immediately started looking for another job. As a result the:
A) unemployment rate remains constant.
B) labor force increases.
C) unemployment rate increases.
D) labor force decreases.

Question

Quizplus · Accepted Answer

When Carla lost her job and started looking for another job, she becomes unemployed and adds to the number of people who are seeking employment but are unable to find it. This increases the number of unemployed in the labor force, hence increasing the unemployment rate.

Carla Lost Her Job and Immediately Started Looking for Another