Suppose that there are 1 million part-time workers and 9 million full-time workers in an economy.Then 500,000 of the part-time workers switch to full-time work.We can conclude that the:
A)official unemployment rate will fall
B)official unemployment rate will rise
C)official unemployment rate will remain unchanged
D)size of the labour force will increase
E)size of the labour force will decrease

Question

Quizplus · Accepted Answer

The official unemployment rate measures the percentage of the labor force that is jobless and actively seeking employment. The shift of 500,000 workers from part-time to full-time does not change the number of people employed or the size of the labor force; it only changes the nature of their employment. Therefore, the official unemployment rate remains unchanged.

Suppose That There Are 1 Million Part-Time Workers and 9