Suppose That Some People Are Counted as Unemployed When, to Maintain

Multiple Choice

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labour force instead of as unemployed, how would the labour statistics change?

A) The unemployment rate and the labour-force participation rate would be higher.
B) The unemployment rate and the labour-force participation rate would be lower.
C) The unemployment rate would be lower, and the labour-force participation rate would be higher.
D) The unemployment rate would be higher, and the labour-force participation rate would be lower.