The size of the labor force depends on the size of the working-age population and the
A) participation rate.
B) employment rate.
C) unemployment rate.
D) inﬂation rate.

Question

Quizplus · Accepted Answer

The size of the labor force is determined by the number of people who are of working age and either employed or actively seeking employment. The participation rate measures the proportion of the working-age population who are either employed or actively seeking employment, and therefore it is a key determinant of the size of the labor force. The employment rate measures the proportion of the working-age population who are currently employed, while the unemployment rate measures the proportion of the labor force who are unemployed. Inflation rate is a measure of the general increase in prices of goods and services over time and is not directly related to the size of the labor force.

The Size of the Labor Force Depends on the Size