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Scenario: The Employment Rate
A group of 10 people includes 3 retirees, 2 part-time workers, 2 discouraged workers, 1 unemployed worker, and 2 full-time workers.
-(Scenario: The Employment Rate) Look at the scenario The Employment Rate. If the discouraged workers in this group became active job searchers, the:
A)unemployment rate would fall.
B)unemployment rate and the labor force participation rate would rise.
C)labor force participation rate would fall.
D)unemployment rate and the labor force participation rates would both fall.

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If the discouraged workers become active job searchers, they would be included in the labor force, which would increase the size of the labor force. However, if they do not find work immediately, they would also be counted as unemployed, which would increase the unemployment rate. Therefore, both the unemployment rate and the labor force participation rate would rise.

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