Question

Rick lost his job as a logistics and distribution coordinator nearly three years ago. after a long and failed​ search, rick finally gives up and stops looking for a new job. ​ rick's decision to suspend his job search causes the unemployment rate to​ ________ and the labor force participation rate to​ ________.

Answer 1

Rick's decision to suspend his job search causes the unemployment rate to​ decrease and the labor force participation rate to​ decrease.

In this situation the unemployment rate is decreasing because he stopped looking for a job. Only those actively seeking a job can be considered part of the unemployment rate because they have to want a job but can't find one. The labor force participation rate is also dropping because Rick is no longer employed.