An increase in the employment-to-population ratio would

Question

Quizplus · Accepted Answer

An increase in the employment-to-population ratio means more people are employed, which means aggregate hours worked will increase as well. Choice A is incorrect because labor force participation rate is the percentage of the working-age population that is either employed or actively seeking employment, and an increase in the employment-to-population ratio implies more people are employed, but it does not necessarily mean more people are actively seeking employment. Choice B is incorrect because an increase in the employment-to-population ratio means more people are employed and therefore aggregate hours worked will increase. Choice D is incorrect for the same reason as Choice A. Choice E is incorrect because an increase in the employment-to-population ratio leads to more people working, so aggregate hours cannot remain the same.

An Increase in the Employment-To-Population Ratio Would