Tom loses his job and immediately begins looking for another.Other things the same,the unemployment rate

Question

Quizplus · Accepted Answer

When Tom loses his job and begins looking for another, the unemployment rate increases because he is now considered unemployed. However, this does not affect the labor-force participation rate, as it remains the same as long as Tom is actively seeking employment. Therefore, the correct answer is B, as the unemployment rate increases and the labor-force participation rate is unaffected.

Tom Loses His Job and Immediately Begins Looking for Another