During a Recession, People Drop Out of the Labor Force

question 65

Multiple Choice

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

• A) increases the official U-3 unemployment rate.
• B) decreases the official U-3 unemployment rate.
• C) does not change the official U-3 unemployment rate.
• D) increases the official U-3 unemployment rate and the labor force participation rate.

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Definitions:

Conduct Problems

Behavioral issues in children and adolescents that involve breaking societal rules, defying authority, and showing aggression towards others.

Poverty

A state of having insufficient financial resources to meet basic living needs such as food, shelter, and clothing.

Middle-Class Parents

Parents who belong to the socio-economic group characterized by average income, education level, and occupational prestige.

Birth

The act or process of bearing or bringing forth offspring from the uterus, marking the beginning of a new individual's life outside the mother's body.