Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time students.This would cause

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The labor force participation rate would decrease because these individuals would no longer be considered a part of the labor force since they are not actively seeking employment. This would not directly affect the unemployment rate as those who quit their jobs to become students are not counted as unemployed. However, it could indirectly affect the unemployment rate in the future if these individuals re-enter the labor force after completing their education. The number of discouraged workers may increase if some workers who cannot find jobs decide to become students as well, but this would depend on individual circumstances. The employment population ratio may or may not increase depending on whether those who quit their jobs to become students are included in the numerator.

Suppose the Government Launches a Successful Advertising Campaign That Convinces