Suppose that homemakers are included as employed in the labor force statistics,rather than being counted as out of the labor force.This would
A)increase the measured unemployment rate.
B)increase the measured labor force participation rate.
C)decrease the number of persons in the labor force.
D)decrease the number of persons in the working-age population.

Question

Quizplus · Accepted Answer

If homemakers are included as employed in the labor force statistics, the number of people in the labor force will increase. The labor force participation rate is the percentage of the population that is in the labor force, and by including homemakers, the denominator in the calculation of the participation rate will increase. This would result in an increase in the measured participation rate.

Suppose That Homemakers Are Included as Employed in the Labor