Jack just received a promotion at work and now works 50 hours per week instead of 35.As a result,
A)the unemployment rate increased.
B)the unemployment rate decreased.
C)the labor force participation rate increased.
D)neither the unemployment rate nor the labor force participation rate changed.

Question

Quizplus · Accepted Answer

Jack's promotion does not affect the unemployment rate since he is still employed. The labor force participation rate also remains unchanged as this rate measures the number of people who are either employed or actively seeking employment. Since Jack did not join or leave the labor force, the labor force participation rate remains the same. Therefore, neither the unemployment rate nor the labor force participation rate changed.

Jack Just Received a Promotion at Work and Now Works