Question

President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. You conclude that....
a. both of them could be telling the truth if the labor force grew slower than employment.

b. both of them could be telling the truth if the labor force grew faster than employment.

c. one of them must be lying.

d. both of them could be telling the truth if the labor force, and employment grew at the exact same rate.

Answer 1

Answer:

The correct answer is option b.

Explanation:

President Bigego is claiming that more people are working after he too office.  

Senator Pandor claims that the unemployment rate has increased after Bigego took office.  

Both of them can be right. Unemployment and the number of people working both can increase at the same time. If the labor force increased overtime, the number of people working can increase.  

Though if the growth of employment is slower than the growth of the labor force, then unemployment will increase as well. This is because with the increase in labor force number of workers will increase but slower employment growth will create fewer jobs. So, unemployment will increase.