Satchel loses his job and immediately begins looking for another.Other things the same,the unemployment rate
A)increases,and the labor-force participation rate decreases.
B)and the labor-force participation rate both increase.
C)increases,and the labor-force participation rate is unaffected.
D)is unaffected,and the labor-force participation rate decreases.

Question

Quizplus · Accepted Answer

When Satchel loses his job and starts looking for another, he becomes unemployed, which increases the unemployment rate. However, since he is still part of the labor force, the labor-force participation rate remains unaffected.

Satchel Loses His Job and Immediately Begins Looking for Another