According to the Added Worker Effect, What Happens During a Recession

question 10

Multiple Choice

According to the added worker effect, what happens during a recession?

• A)Households consume less.
• B)More inferior goods are purchased.
• C)Capital earns a lower rate of return.
• D)There is an increase in the labor force participation rate of secondary workers.
• E)There is a decrease in the labor force participation rate as many unemployed workers give up looking for a job.