Holding all else constant,if people who are currently discouraged workers decide to start looking for jobs again,you will see:
A) an increase the unemployment rate.
B) a decrease in the unemployment 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

When discouraged workers start looking for jobs again, they are counted as part of the labor force and unemployed, which increases the unemployment rate.

Holding All Else Constant,if People Who Are Currently Discouraged Workers