1. "Employment is projected to revive at 3.5 percent per year. Since the trend rate of increase in the labor force is just less than 2 percent per year, that would seem to produce a healthy decline in the unemployment rate of 1.5 percentage points per year. Unfortunately, that probably won't happen." It may not happen because of

a) part-time workers b) discouraged workers

c) encouraged workers d) a fall in the participation rate

2. "That is why the jump in May's unemployment rate - from 7.2 percent to 7.5 percent, the highest during this business cycle - caused dismay. Yet this may be missing the point. The number of people in the labor force in the month of May jumped by 330,000." The higher unemployment rate was probably caused by

a) a fall in employment b) a massive destruction of jobs 8

c) an increase in the participation rate

d) an increase in the number of discouraged workers

3. "In any economic slowdown, the unemployment rate rises, first and foremost, because employment growth slows or actually goes into negative territory. But how high the jobless rate goes can also depend very crucially on exactly how fast the labor force decides to grow." Which of the following causes the labor force to grow more slowly.

a) a rise in the participation rate b) an increase in encouraged workers

c) an increase in discouraged workers d) homemakers looking for market jobs