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 labor force instead of as unemployed, then

A) both the unemployment rate and labor-force participation rate would be higher.
B) both the unemployment rate and labor-force participation rate would be lower.
C) the unemployment rate would be lower and the labor-force participation rate would be higher.
D) the unemployment rate would be higher and the participation rate would be lower.