Question

Due to the rising cost of a college education, a greater percentage of students have part-time jobs in comparison to past years. All else the same, this decrease in the number of full-time students can be expected to ________ the labor force participation rate and ________ the unemployment rate.

increase; have no effect on
decrease; decrease
have no effect on; have no effect on
increase; decrease
increase; increase

Answer 1

This decrease in the number of full-time students can be expected to "INCREASE" the labor force participation rate and "DECREASE" the unemployment rate.

Step-by-step explanation:

The labor force participation rate is the ratio of the number of people employed and those actively seeking employment, to the total labor force.

Unemployment rate is the ratio of the number of those currently unemployed to the total labor force.

If the number of students with part-time jobs increase, then it will lead to an increase in the number of people employed and a corresponding increase in the labor force participation rate.

This will also reduce the number of people unemployed and the unemployment rate.