If the number of employed increases while the number of unemployed does not change, the unemployment rate:
A) will increase.
B) will decrease.
C) will not change.
D) may either increase or decrease.

Question

Quizplus · Accepted Answer

An increase in the number of employed individuals without any change in the number of unemployed individuals will decrease the unemployment rate, as the percentage of the total labor force that is unemployed will decrease.

If the Number of Employed Increases While the Number of Unemployed