Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate ...
a. increases, and the labor-force participation rate is unaffected.
b. and the labor-force participation rate both increase.
c. and the labor-force participation rate are both unaffected.
d. increases, and the labor-force participation rate decreases.
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