When an individual who has not been working but has been looking for work decides to terminate the search process, the official unemployment rate
A) will fall.
B) will rise.
C) will remain unchanged.
D) may fall or rise depending on whether or not the individual resumes his education.

Question

Quizplus · Accepted Answer

When an individual stops looking for work, they are no longer counted as part of the labor force, which decreases the unemployment rate since the rate is calculated based on those actively seeking employment.

When an Individual Who Has Not Been Working but Has