Question

How does Discouraged worker impact on unemployment rate?

a) unemployment rate remains constant b) increase the unemployment rate

c) decrease the unemployment rate d) no direct impact on rate​

Answer 1

Answer:-

(a) increase the unemployment rate

Explanation:-

• Discouraged workers can reduce the labor force participation rate (LFPR) if unemployment is serious enough.
• At the beginning of a recession, the number of discouraged workers increases as the participation rate decreases.
• After looking for six months or more, many stop looking and drop out of the labor force.

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