If jobless persons who had given up searching suddenly resumed active searches for paying jobs-but had not yet found any-the unemployment rate would:

Question

Quizplus · Accepted Answer

If jobless persons who had given up searching suddenly resumed active searches for paying jobs but had not yet found any, the number of unemployed people would increase. This means the numerator (number of unemployed people) in the unemployment rate equation would increase while the denominator (the labor force) stays the same, resulting in a higher unemployment rate. Therefore, the unemployment rate would rise.

If Jobless Persons Who Had Given Up Searching Suddenly Resumed