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Janet Loses Her Job and Decides to Sit Around at Home

Question 3

Multiple Choice

Janet loses her job and decides to sit around at home for a few weeks. Ceteris paribus:


A) The unemployment rate is unaffected, and the labour-force participation rate increases
B) The unemployment rate increases, and the labour-force participation rate is unaffected
C) The unemployment rate increases, and the labour-force participation rate increases
D) The unemployment rate increases, and the labour-force participation rate decreases

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