If the number of discouraged searchers increases, everything else remaining the same, then the
A)unemployment rate will increase.
B)employment-to-population ratio will decrease.
C)labour force participation rate will increase.
D)labour force participation rate will decrease.
E)employment-to-population ratio will increase.

Question

Quizplus · Accepted Answer

Discouraged searchers are not counted in the labor force, so an increase in their number decreases the labor force participation rate.

If the Number of Discouraged Searchers Increases, Everything Else Remaining