The unemployment rate will increase whenever there is a(n):
A) increase in the number of persons classified as unemployed.
B) increase in the number of unemployed persons relative to the size of the labor force.
C) increase in the size of the U.S. population and there is no change in the number of persons classified as employed.
D) reduction in the size of the labor force.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed persons by the size of the labor force. Therefore, an increase in the number of unemployed persons relative to the size of the labor force will lead to an increase in the unemployment rate. The other choices may or may not necessarily lead to an increase in the unemployment rate.

The Unemployment Rate Will Increase Whenever There Is A(n)