Rick loses his job and immediately begins looking for another. Ceteris paribus, the unemployment rate:________.A. increases, and

Question

2 years ago

6

Rick loses his job and immediately begins looking for another. Ceteris paribus, the unemployment rate:________.A. increases, and

the labor-force participation rate decreases.B. increases, and the labor-force participation rate is unaffected.C. is unaffected, and the labor-force participation rate increases.D. decreases, and the labor-force participation rate is unaffected.

Business

2 answers:

almond37 [142] · Answer 1 · 2022-09-18T14:04:09+03:00

Answer:

B. increases, and the labor-force participation rate is unaffected

Explanation:

Rick loses his job and immediately begins looking for another. Definitely, the unemployment rate has increase. He has been sent back to the labor market. Rick is definitely unemployed because he lost his job and this means an increase in the employment rate. Note that unemployment rate is the percentage of the labor force that is unemployed and are actively looking for a job.

The labor force participation rate is the percentage number of people who are of working age both the employed and the once actively looking for a job. The labor force participation rate is definitely unaffected as Rick lost his job.

swat32 · Answer 2 · 2022-09-18T15:20:02+03:00

Answer: The answer is B. increases, and the labor-force participation rate is unaffected.

Explanation: First we will define unemployment and labor force participation rate.

Unemployment is a situation in which persons who are within the working age range, and are willing and able to work are without jobs.

Labor force participation rate can be defined as the section of working population within the age range of 16-64 present in an economy who are either employed or seeking employment. What this means is that, it is the total number of individuals who are currently employed or in search of a job.

Therefore to answer the question above, we can say that unemployment rate has increased as Rick lost his job. But the labor force participation rate has been unaffected because Rick is already in the labor force participation, whether employed or unemployed because the labor force participation rate covers both employed and unemployed individuals.