Holding all else constant,if people who are currently unemployed become discouraged workers,you will see:
A) an increase the unemployment rate.
B) an increase the labor force participation rate.
C) no effect on the unemployment rate.
D) no effect on the labor force participation rate.
E) a decrease the labor force participation rate.

Question

Quizplus · Accepted Answer

Discouraged workers are those who have given up looking for work because they believe there are no jobs available. When people who are currently unemployed become discouraged workers, they are no longer counted as part of the labor force. This means that the labor force participation rate will decrease.

Holding All Else Constant,if People Who Are Currently Unemployed Become