If half of all unemployed individuals suddenly gave up looking for work,the unemployment rate would ________ and the labor force participation rate would ________.

Question

Quizplus · Accepted Answer

If half of all unemployed individuals gave up looking for work, they would no longer be counted as part of the labor force. As a result, the number of unemployed individuals and the labor force would both decrease. Therefore, the unemployment rate (which is calculated as the number of unemployed individuals divided by the labor force) would decrease, and the labor force participation rate (which is the labor force divided by the total population) would also decrease.

If Half of All Unemployed Individuals Suddenly Gave Up Looking