Suppose That Next Year 300 000 Existing Jobs in the Economy

question 40

Multiple Choice

Suppose that next year 300 000 existing jobs in the economy are eliminated through layoffs and plant closures,and 400 000 new jobs are created through expansions and the creation of new firms.The amount of unemployment will rise over that year if

• A)more than 300 000 people drop out of the labour force.
• B)more than 100 000 people drop out of the labour force.
• C)less than 100 000 people drop out of the labour force.
• D)less than 100 000 people join the labour force.
• E)more than 100 000 people join the labour force.

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