Question

Indicate what happens to the unemployment rate and the labor-force participation rate in each of the following scenarios. a. After an unsuccessful job search, Tim gives up looking and retires. b. Alyssa, a stay-at-home mom, starts looking for a job as her kid enters elementary school. c. Brian has a birthday, becomes an adult, but has no interest in working. d. Edison, a construction worker, dies in an accident at work.

Answer 1

Answer:

Explanation:

For statement 1. The unemployment rate is high as Tim must have tried is best and the labour force rate is also low because he gave up looking and retires, this must have an impact on labour force.

For statement 2, unemployment rate will reduce or a quota will contribute to the reduction of unemployment rate If she gets a job. And labour force will increase.

For statement 3, Brian decision will have a major negative impact on the unemployment rate and labour force because of lack of interest.

For statement 4, this is an accident which will definitely have an impact on unemployment rate and labour force, a live is lost.