The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the
labor force participation rate would change.
What will be an ideal response?
The unemployment rate would increase and the labor force participation rate would stay the same. The number of unemployed would rise, but the labor force would stay the same. The part-time workers who wanted to be full-time workers would simply go from being employed to unemployed. With no change in the labor force, the labor force participation rate would not change.
You might also like to view...
When the government's outlays equal its tax revenue, the budget
A) has a deficit and the national debt is increasing. B) has a deficit and the national debt is decreasing. C) is balanced and the national debt is not changing. D) has a surplus and the national debt is decreasing. E) has a surplus and the national debt is increasing.
An increase in money demand will shift the
A) IS curve to the left. B) IS curve to the right. C) LM curve to the left. D) LM curve to the right.