If the number of discouraged workers decreases because many of them start to look for work,everything else remaining the same,then the
A)unemployment rate will increase.
B)employment-to-population ratio will decrease.
C)labour force participation rate will increase.
D)labour force participation rate will decrease.
E)both A and C.

Question

Quizplus · Accepted Answer

When discouraged workers start looking for work, they are counted as part of the labor force, which increases the labor force participation rate. Since they are not yet employed, the unemployment rate also increases.

If the Number of Discouraged Workers Decreases Because Many of Them