Asked by Thomas Ramirez on Apr 29, 2024
Verified
Statement I: It is possible for the unemployment rate to decline while the total employment declines.
Statement II: It is possible for the unemployment rate to decline while the number of unemployed people stays the same.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Total Employment
The total number of people employed in an economy at a given time, including both full-time and part-time workers.
Unemployed People
Individuals who are capable of working and actively seeking employment but are unable to find a job.
- Acquire understanding about the varieties of unemployment and the processes involved in their determination and measurement.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
Statement I is true because the unemployment rate can decline if the labor force (the sum of employed and unemployed individuals actively seeking work) decreases faster than the total employment. This could happen if people retire, go back to school, or otherwise stop looking for work. Statement II is true because the unemployment rate can decline if the labor force grows at the same rate as employment, keeping the number of unemployed people constant but decreasing the unemployment rate as a percentage of the larger labor force.
Learning Objectives
- Acquire understanding about the varieties of unemployment and the processes involved in their determination and measurement.