If the duration of unemployment in a country increases from 16 weeks to 18 weeks, then
A) the unemployment rate will decrease.
B) the unemployment rate will increase.
C) the size of the labor force will increase.
D) the size of the labor force will decrease.

Question

Quizplus · Accepted Answer

If the duration of unemployment in a country increases, it means that people are not able to find jobs for a longer period of time. This will lead to an increase in the unemployment rate as there will be more unemployed people in the labor force. The size of the labor force is not affected by the duration of unemployment, so choices C) and D) are not correct. Choice A) is incorrect because an increase in the duration of unemployment does not necessarily mean that the unemployment rate will decrease.

If the Duration of Unemployment in a Country Increases from 16