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As a consequence of the existence of a nonaccelerating-inflation rate of unemployment, or NAIRU
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- The unemployment rate declined from 3.8 percent in March 2019 to 3.6 percent in April. The labor force participation rate also declined from March to April, from 63.0 percent to 62.8 percent.Holding constant the number of people employed in April 2019, if the labor force participation rate had increased instead of decreased, the unemployment rate for April 2019 would beA.less than 3.6 percent because the value in the numerator of the formula for the unemployment rate would increase less than the value in the denominator.B.greater than 3.6 percent because adding the same number to both the numerator and the denominator of a fraction that is less than one increases the value of the fraction.C.greater than 3.6 percent because the value in the numerator of the formula for the unemployment rate would increase less than the value in the denominator.Your answer is not correct.D.less than 3.6 percent because the value in the numerator of the formula for the unemployment rate would increase more than the value in the denominator.
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