An unemployed worker gets discouraged and stops searching for a job. What happens to the unemployment rate?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aIt increasesbIt decreasescI can't tell
Question
An unemployed worker gets discouraged and stops searching for a job. What happens to the unemployment rate?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aIt increasesbIt decreasescI can't tell
Solution
The unemployment rate decreases. This is because the unemployment rate is calculated based on the number of unemployed people who are actively seeking employment. If a person gets discouraged and stops searching for a job, they are no longer considered as part of the labor force, thus they are not counted in the unemployment rate. So, the correct answer is b) It decreases.
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