ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Less workers were classified as part-time workers
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The total number of jobs in the economy increased
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The total number of jobs in the economy decreased
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The total number of jobs in the economy stayed the same
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The nominal GDP will increase
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Detailed explanation-1: -The participation rate measures the percentage of Americans who are in the labor force. The unemployment rate measures the percentage within the labor force that is currently without a job. A high participation rate combined with a low unemployment rate is a sure sign of a robust job market.
Detailed explanation-2: -An increase in labor force participation will initially lead to less unemployed individuals if there are jobs available; however, if the labor force participation continues to rise, then there are less jobs available and thus make it harder to reduce unemployment.
Detailed explanation-3: -The labor force participation rate represents the number of people in the labor force as a percentage of the civilian noninstitutional population. In other words, the participation rate is the percentage of the population that is either working or actively looking for work.
Detailed explanation-4: -The given statement is true. The labor force participation rate is calculated by dividing the sum of employed people and people who are unemployed and looking for a job by the working-age population. Therefore, the rate shows the percentage of the adults that are working or are searching for a job.