Between August 2011 and August 2012 the number of discouraged workers decreased from 977,000 to 844,000.Assuming the change resulted from discouraged workers starting to make specific efforts to find a job again,this change creates
A) an increase to the U-3 unemployment rate.
B) a decrease to the U-3 unemployment rate.
C) no change to the U-3 unemployment rate.
D) a decrease in the labor force participation rate.

Question

Quizplus · Accepted Answer

When discouraged workers start looking for jobs again, they are counted as unemployed, increasing the U-3 unemployment rate.

Between August 2011 and August 2012 the Number of Discouraged