An Increase in the Labor Force Participation Rate

question 221

Multiple Choice

An increase in the labor force participation rate

• A) implies that the unemployment rate must fall.
• B) implies that the unemployment rate must rise.
• C) means there are more discouraged workers.
• D) is consistent with either a rise or a fall in the unemployment rate.

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Definitions:

Full Satisfaction

The complete fulfillment or settlement of a debt, obligation, or another requirement.

Possession

The physical holding or control of an object or property, which may or may not be accompanied by legal ownership.

Debt

An amount of money borrowed by one party from another, typically with the obligation to pay back with interest.

Unilateral Discharge

When one party ends an agreement or contract without the need for permission from or negotiation with the other party.