Question
Suppose that 100 people who were previously not in the labor force (N) start looking for jobs. By the next period, some of these persons
Suppose that 100 people who were previously not in the labor force (N) start looking for jobs. By the next period, some of these persons have found jobs and are reclassified as employed (E), but others do not find jobs and are reclassified as unemployed (U). Unfortunately, we don't know how many of the new searchers are reclassified as either E or U. Assume that the population remains constant and no other workers undergo reclassifications besides the 100 new job-seekers described in this question. Under these conditions, which of the following variables is sure to have increased? A.) The employment-to-population ratio. B.) The labor force participation rate (LFPR). C.) The unemployment rate (UR). D.) A.) and B.) E.) A.), B.), and C.)
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