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AP® Macroeconomics

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Unemployment Rate: Potential Workers Stop Searching for a Job

APMACR-IPGE1E

Suppose an economy has 250,000 potential workers who suddenly stop searching for a job.

What would happen to the unemployment rate of that economy?

A

The unemployment rate of the economy would increase.

B

The unemployment rate of the economy would decrease.

C

The unemployment rate of the economy would increase, then decrease.

D

The unemployment rate of the economy would decrease, then increase.

E

There would be no change in the unemployment rate of the economy.