Question

Group Working age population Discouraged workers Employed Unemployed # in Millions 215 5 138 According to the table, the labor force participation rate ispercent Round to the nearest whole number. Question 10 Holding all else constant,if people who are currently unemployed becom discouraged workers, you will see O an increase in the unemployment rate. an increase in the labor force participation rate. no effect on the unemployment rate. no effect on the labor force participation rate. a decrease in the labor force participation rate

Answer 1

Answer:

A decrease in labor force participation rate

Explanation:

The workers which are discouraged can opt out of the labor market since there is no incentive for them work anymore. The workers choosing to go out of the labor market will decrease the overall labor force participation rate. The unemployment rate can also be affected but the main effect would be on labor force participation rate