Increases in the duration of unemployment will
A)cause the unemployment rate to decrease.
B)not affect the unemployment rate.
C)decrease the number of discouraged workers.
D)increase the unemployment rate.

Question

Quizplus · Accepted Answer

Increases in the duration of unemployment indicate that individuals are having difficulty finding employment, which will ultimately increase the unemployment rate. This is because the longer individuals are unemployed, the more likely they are to be counted in the labor force and thus included in the unemployment rate calculation. Additionally, the longer individuals are unemployed, the more discouraged they may become and drop out of the labor force, further increasing the unemployment rate.

Increases in the Duration of Unemployment Will