Suppose that roughly 8 million people in Canada unsuccessfully sought work this month, the same number as last month, while 2 million people who were unemployed last month gave up searching for work this month. What will happen to the official unemployment rate this month, all other things equal? a.The unemployment rate will decrease by 25%. b.It will fall because 2 million people are no longer in the labour force and so are not counted as unemployed. c.It will rise because 2 million people are no longer in the labour force and so are not counted as unemployed. d.It will be unaffected because the same number of people are unemployed.

The unemployment rate is defined as the percentage of the workforce that is unemployed. It's a…

Answered: Suppose that roughly 8 million people…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that roughly 8 million people in Canada unsuccessfully sought work this month, the same number as last month, while 2 million people who were unemployed last month gave up searching for work this month. What will happen to the official unemployment rate this month, all other things equal?

	a.	The unemployment rate will decrease by 25%.
	b.	It will fall because 2 million people are no longer in the labour force and so are not counted as unemployed.
	c.	It will rise because 2 million people are no longer in the labour force and so are not counted as unemployed.
	d.	It will be unaffected because the same number of people are unemployed.