Increases in the duration of unemployment may
A) reflect a general downturn in economic activity that depresses job openings.
B) increase the number of discouraged workers.
C) increase the unemployment rate.
D) all of the above.

Question

Quizplus · Accepted Answer

When duration of unemployment increases, it indicates that people are not finding jobs for a longer period of time which can be due to a general downturn in economic activity that depresses job openings. This can lead to an increase in the number of discouraged workers who may stop looking for jobs, which in turn increases the unemployment rate. Therefore, all of the above options are correct.

Increases in the Duration of Unemployment May