Suppose the Labor Force Stays Constant,and the Working-Age Population Stays

question 15

Multiple Choice

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

• A)increase.
• B)decrease.
• C)remain constant.
• D)not change in a way that can be predicted.

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Definitions:

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing American monetary policy and financial system regulation.

Bank Failures

Occurrences when a bank is unable to meet its obligations to depositors or creditors and ceases operations, often resulting in regulators seizing the institution.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by massive unemployment and widespread poverty.

Lost Confidence

A situation where consumers or investors become pessimistic about the economic prospects, leading to reduced spending and investment.