APFIVE Labor Market Changes and the Unemployment Rate
An economy experiences the following changes over one year: 2 million people lose their jobs but continue searching, 3 million previously unemployed people find jobs, and 4 million people stop looking for work. What is the net effect on the unemployment rate?
A
Increases, as the labor force contracted
B
Ambiguous; depends on initial labor force size
C
Decreases, as more people found jobs than lost them
D
Remains unchanged due to offsetting factors
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | weitaolim986 | 1 | 1 | 0m 00s | 100 |
| #2 | rebekahnrp | 1 | 1 | 0m 56s | 44 |
| #3 | s568769 | 0 | 1 | 0m 00s | -10 |
| #4 | hxuna0217 | 0 | 1 | 0m 24s | -34 |
| #5 | thut15846 | 0 | 1 | 0m 49s | -59 |
| #6 | gavinkennedy711 | 0 | 2 | 2m 18s | -158 |
Items per page:
10
1 – 6 of 6