Author Question: Explain how the labor force participation rate and the unemployment rate change in a recession. ... (Read 136 times)

Chelseaamend

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Explain how the labor force participation rate and the unemployment rate change in a recession.
 
  What will be an ideal response?

Question 2

An expansion ends when the economy hits a trough and then enters a recession.
 
  Indicate whether the statement is true or false



adammoses97

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Answer to Question 1

The labor force participation rate tends to decrease during a recession as more workers become discouraged. The unemployment rate increases during a recession because there are fewer jobs.

Answer to Question 2

FALSE



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