In any economic slowdown, the unemployment rate rises, first and foremost, because employment growth slows or actually goes into negative territory.

In any economic slowdown, the unemployment rate rises, first and foremost, because employment growth slows or actually goes into negative territory. But how high the jobless rate goes can also depend very crucially on exactly how fast the labor force decides to grow.” Which of the following causes the labor force to grow more slowly.

a) a rise in the participation rate b) an increase in encouraged workers

c) an increase in discouraged workers d) homemakers looking for market jobs

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