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:

Taft-Hartley Act

A federal law enacted in 1947 that restricted the activities and power of labor unions in the United States, formally known as the Labor Management Relations Act.

Training Video

A visual instructional tool designed to teach viewers specific skills or knowledge, often used in educational and professional development contexts.

Equal Employment Opportunity Commission

A federal agency in the United States responsible for enforcing federal laws making it illegal to discriminate against a job applicant or an employee because of race, color, religion, sex, national origin, age, disability, or genetic information.

Unfair Labor Practice

Actions by employers or unions that violate the rights of employees or the provisions of labor laws.