As the economy strengthens, some "discouraged workers" reenter the labor market and begin...
Question:
As the economy strengthens, some "discouraged workers" reenter the labor market and begin searching for jobs. Assuming that none of them initially find jobs, this would cause the unemployment rate to _____, the labor force participation rate to _____, and the employment-population ratio to _____.
A. rise; rise; fall
B. not change; rise; fall
C. rise; not change; not change
D. none of the above
Strengthened economy
A strengthened economy depicts the growth prospects that are prevailing in an economy. The strengthened economy exerts a scenario of the increasing levels of competition and the fulfillment of all needs of economic agents.
Answer and Explanation: 1
D. none of the above
As the economy gets strengthened, the people who are seeking for the job will get the jobs. It is given that the discouraged workers have not got jobs, but it does not mean that no one has got a job. This reduces the unemployment rate. As a result, the labor force participation rate will also approach towards an increasing state, and the employment-population ratio will also rise.
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How Economic Conditions Influence the Modern Business Market
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Chapter 6 / Lesson 16
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Modern business markets are impacted by a variety of forces in the primary, secondary, and tertiary sectors of the economy. Investigate the role of four key economic conditions that influence the business market: international transactions, government intervention, supply and demand, and consumer confidence.
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