Suppose the unemployment rate rises in an economy that is starting to recover from a recession.Which of the following best explains the rising unemployment rate?

Question

Quizplus · Accepted Answer

When discouraged workers, who had previously given up on finding employment, start looking for work again, they are counted as part of the labor force but are unemployed until they find a job. This can lead to an increase in the unemployment rate as the economy begins to recover, because more people are actively seeking work.

Suppose the Unemployment Rate Rises in an Economy That Is