Suppose that the size of the labor force is 100 million and that the unemployment rate is 5 per cent. Which of the following actions would reduce the unemployment rate the most?

A. 1 million unemployed people get jobs
B. 2 million unemployed people leave the labor force
C. 3 million people join the labor force and they all get jobs
D. 10 million people join the labor force and half of them get jobs


Ans: B. 2 million unemployed people leave the labor force

Economics

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