Which of the following tends to occur when the unemployment rate increases?
A)a reduction in the labor force participation rate
B)a reduction in the number of discouraged workers
C)an increase in the number of employed workers
D)all of the above
E) none of the above

Question

Quizplus · Accepted Answer

When the unemployment rate increases, individuals may become discouraged and stop actively seeking employment, leading to a reduction in the labor force participation rate. This can also result in a reduction in the number of discouraged workers. However, it is unlikely to result in an increase in the number of employed workers.

Which of the Following Tends to Occur When the Unemployment