Scenario: Consider Country A with a population of 2 million people. In Country A, there are 1.5 million people employed; 0.3 million younger than 18, in school or retired; 0.1 million voluntarily unemployed; and 0.1 million people officially unemployed.
-Refer to the scenario above.If the market clearing wage rate in Country A decreases,what is most likely to happen to the number of voluntarily unemployed people and the number of officially unemployed people?
A) Both numbers would increase.
B) The number of voluntarily unemployed people would decrease, and the number of officially unemployed people would increase.
C) The number of voluntarily unemployed people would increase, and the number of officially unemployed people would decrease.
D) The number of voluntarily unemployed people would stay the same, and the number of officially unemployed people would increase.
Correct Answer:
Verified
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