Which of the following events would increase the unemployment rate, if nothing else changed?
A)Unemployed workers leave the labor force
B)Employed workers leave the labor force
C)Workers from outside the labor force become employed
D)Unemployed workers become employed

Question

Quizplus · Accepted Answer

The unemployment rate is computed as the number of unemployed divided with the labor force. When employed workers leave the labor force, as often happens at retirement, the denominator in the unemployment rate computation decreases, making the unemployment rate go up, ceteris paribus.

Which of the Following Events Would Increase the Unemployment Rate