Suppose that the number of people employed in an economy falls by 0.1 percent over the course of a single month. It is, in such a circumstance,
A) possible for the unemployment rate to fall if enough unemployed workers become too discouraged to look for a job.
B) possible for the unemployment rate to remain constant if the fractional component falls.
C) impossible for the unemployment rate to do anything but fall.
D) impossible for the unemployment rate to do anything but rise.
E) none of the above.
Correct Answer:
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