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QUESTION IMAGE

an increase in the number of discouraged workers causes the unemploymen…

Question

an increase in the number of discouraged workers causes the unemployment rate toa decrease along with the labor-force participation rateb increase while the labor-force participation rate decreasesc stay the same because the workers are still unemployedd decrease while the labor-force participation rate stays the samee increase along with the labor-force participation rate

Explanation:

Brief Explanations

Discouraged workers are not counted in the labor force or as unemployed. When more workers become discouraged, they are removed from both the number of unemployed people and the labor force. The unemployment rate is calculated as $\frac{\text{Unemployed}}{\text{Labor Force}}$. Reducing both the numerator and denominator by the same number will decrease this rate. The labor-force participation rate is $\frac{\text{Labor Force}}{\text{Adult Population}}$, and since the labor force shrinks, this rate also decreases.

Answer:

A. decrease along with the labor-force participation rate