All else equal,which of the following would increase the unemployment rate?

Question

Quizplus · Accepted Answer

(i) A decrease in the birth rate would decrease the labor force participation rate, but it wouldn't necessarily increase the unemployment rate.
(ii) An increase in the minimum wage would increase the cost of labor for firms, causing them to hire fewer workers and lay off others, which would increase the unemployment rate.
(iii) A recession would cause firms to produce fewer goods and services, resulting in a decline in the demand for labor, which would increase the unemployment rate.
(iv) An increase in the number of young people staying in school would decrease the labor force participation rate, but it wouldn't necessarily increase the unemployment rate.

All Else Equal,which of the Following Would Increase the Unemployment