Recall the Application about the impact of the federal Disability Insurance program on the unemployment rate to answer the following question(s).
-Recall the Application. If the federal Disability Insurance program leads to a decrease in the labor force participation rate, the ________ will be ________.
A) frictional unemployment rate; higher
B) structural unemployment rate; higher
C) measured unemployment rate; lower
D) measured unemployment rate; higher

Question

Quizplus · Accepted Answer

If the federal Disability Insurance program decreases the labor force participation rate, individuals who might otherwise be counted as unemployed (actively seeking work but not working) may instead exit the labor force (not seeking work). This reduces the numerator in the unemployment rate calculation (number of unemployed) without affecting the denominator (labor force), leading to a lower measured unemployment rate.

Recall the Application About the Impact of the Federal Disability