Question

Diane lost her job and immediately started looking for another job. As a result the A. unemployment rate remains constant. B. unemployment rate increases. C. labor force decreases. D. labor force increases.

Answer 1

unemployment rate increases

Answer: Option B.

Explanation:

Unemployment is the situation when a person is able to work and he is also willing to work at the rate of the wage that is prevailing at that particular period of time but is still not able to find work.

Since Diane is ready to work at the wage rate that is in the market at that time and she is looking for job but still she could not find any job till now, so the rate of the unemployment will increase.