Suppose that a large number of people who used to work or seek work no longer do either. Other things the same, this makes
A)the number of people unemployed rise but does not change the labor force.
B)the number of people unemployed rise but makes the labor force fall.
C)both the number of people unemployed and in the labor force fall.
D)the number of people unemployed fall but does not change the labor force.

Question

Quizplus · Accepted Answer

When people who used to work or seek work no longer do either, they are no longer counted as part of the labor force or as unemployed. This reduces both the number of people in the labor force and the number of people counted as unemployed.

Suppose That a Large Number of People Who Used to Work