Explain how the labor force participation rate, the unemployment ...

[Bob-Dole]

Explain how the labor force participation rate, the unemployment rate, and the percentage of the labor force employed part time change in a recession.
 
  What will be an ideal response?

Question 2

The equilibrium exchange rate is 0.70 euros per dollar. At this exchange rate, the quantity demanded equals the quantity supplied and is 1.3 trillion a day. If the exchange rate is now 0.80 euros per dollar, then
 
  A) there is a shortage of dollars and the exchange rate falls.
  B) there is no change.
  C) there is a surplus of dollars and the exchange rate falls.
  D) there is a surplus of dollars and the exchange rate rises.
  E) there is a shortage of dollars and the exchange rate rises.

[lgoldst9]

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. The percentage of the labor force employed part time tends to increase during a recession as part-time workers for economic reasons increase.

Answer to Question 2

C

[Bob-Dole]

Thanks for the timely response, appreciate it

[coreycathey]

YES! Correct, THANKS for helping me on my review