If an unemployed person quits looking for work, then, eventually the unemployment rate
A)decreases, and the labor-force participation rate is unaffected.
B)and the labor-force participation rate both decrease.
C)is unaffected, and the labor-force participation rate decreases.
D)and the labor-force participation rate are both unaffected.

Question

Quizplus · Accepted Answer

When an unemployed person stops looking for work, they are no longer counted as part of the labor force, which decreases both the unemployment rate and the labor-force participation rate.

If an Unemployed Person Quits Looking for Work, Then, Eventually