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Assume That a High Proportion of Recent College Graduates Decides

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Assume that a high proportion of recent college graduates decides to stay in school seeking advanced degrees,rather than confront the challenge of landing a good job in the midst of generally high unemployment.What is the direct impact of this behavior on (a)the labor force participation rate,(b)the employment ratio,and (c)the unemployment rate?

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The decision to stay in school makes the...

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