Under which of these circumstances would the unemployment rate of a country decl

Question

Under which of these circumstances would the unemployment rate of a country decline? O the number of unemployed persons decreased by a smaller percentage than the labor force declined O the number of unemployed persons increased by a smaller percentage than the labor force increased O the number of unemployed persons decreased by a smaller percentage than the population of people aged 16 and above declined the number of unemployed persons increased by a smaller percentage than the populations of people aged 16 and above increased

Explanation / Answer

Unemployment Rate = Unemployed Persons/ Civilian Labor Force

Consider unemployed persons = x

Civilian work force= y

Unemployment Rate = x/y

If y is increased more than that of x is increased, the unemployment rate will come down. In other words when x is increased by a smaller percentage than y is increased, the unemployment rate will come down.

Therefore (b) the number of unemployed persons increased by a smaller percentage than the labor force increased is the answer.

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